ISA Rates

Leeds Building Society recently announced that they will be launching a five–year fixed rate ISA, paying out 4.6 per cent tax-free. The package also allows you access to 25 per cent of the total amount invested into the ISA without notice or penalty.

The society allows investors and savers to transfer balances from other ISA packages from previous years up to £43,200 plus any interest accrued.

Leeds will also allow an additional £1,500 tax-free cash allowance, which is currently available to people born before or on April 5 1960.

Kim Rebecchi, Sales and Marketing director at Leeds Building society said that the society is 'very aware that tax-free savings are extremely important to their customers and this is why they have decided to accept the additional allowance for the over 50's. Our 5 year fixed-rate ISA delivers peace of mind and flexibility'.

Many of the ISA's in the market are currently paying less than 1 per cent, savers are missing out on at least £1,609 of tax-free interest per annum, a significant difference in the current low interest rate market.

Tax break incentives on ISAs means that a 4.6 per cent interest rate actually equates to 7.67 per cent for top bracket tax payers and 5.75 per cent for standard tax payers.