Chelsea BS launches cash ISA paying 3.2%

Chelsea Building Society has released a new cash ISA offering savers a return of 3.2 per cent gross/ AER.

The fixed rate ISA, available in branch, by telephone and online, matures on May 31, 2013 and can be open with £100 upwards.

Transfers in from other providers are permitted until 30 days after the ISA has been withdrawn from sale.

While withdrawals are not allowed, the account may be closed during the term, subject to 90 days’ loss of interest.

Product manager Lynne Pepper said: “We hear from customers that they are looking for more short-term savings choice when the financial climate remains so uncertain.

“We hope the launch of this new Chelsea ISA – offering a competitive rate in addition to tax-free returns – will prompt more savers to take advantage of the new tax year’s ISA allowance.”

The tax-free threshold for cash ISAs has increased by £300 this year to £5,640.