Building Society launches new fastened ISA with ‘attractive’ 5.6% rate of interest

Tipton and Coseley Building Society have launched a brand new 18-month fastened charge ISA paying a 5.6 p.c interest rate.

Savers can open an account with a minimal deposit of £1,000 and curiosity is paid yearly and at maturity on February 28, 2025.

Commenting on the deal, Rachel Springall, finance skilled at Moneyfactscompare.co.uk, stated: “Tipton and Coseley Building Society has launched a new Fixed Rate ISA which pays an attractive rate of 5.6 percent until February 28, 2025.

“Investors who want to utilise their ISA allowance and are happy to lock their cash away may then find this an appealing choice.

“Consumers can make Cash ISA transfers into the account, and if they so wish, access their deposit subject to a loss of interest penalty. Overall, this deal earns an Excellent Moneyfacts product rating.”

The account might be opened and managed via the constructing society’s cellular app and savers have to be aged 18 or over.

Transfers out in full and early closure are allowed, however will likely be topic to a cost of 90 days curiosity on the account stability.

If there’s inadequate earned curiosity to cowl the 90-day lack of curiosity then the distinction will likely be taken from the stability within the account.

But whereas Tipton and Coseley could also be providing a lovely deal, it isn’t at the moment topping the desk for 18-month ISAs. According to Moneyfactscompare, Skipton Building Society’s 18-Month Fixed Rate Cash ISA (Issue 220) is providing the market-leading charge of 5.65 p.c.

The account might be opened with a minimal deposit of £5,000 and savers can decide to have curiosity paid month-to-month or yearly.

This product is on the market to UK residents aged 16 or over and might be opened and managed on-line, over the cellphone, by put up or in a department. However, it can not at the moment be opened within the Skipton App.

Partial withdrawals aren’t permitted however early closure is, nevertheless, just like Tipton and Coseley’s account, clients will lose 90 days’ curiosity.

For a barely smaller opening deposit, Newcastle Building Society’s 18-Month Fixed Rate ISA (Issue 17) pays an Annual Equivalent Rate (AER) of 5.4 p.c, and savers can get began with simply £1.

The rate of interest is fastened till March 6, 2025, and other people can decide to have it paid month-to-month or yearly.

The account might be launched in a department or on-line, nevertheless, early withdrawals will likely be topic to a bigger lack of 120 days’ curiosity.

ISAs are a well-liked financial savings possibility for Britons as they allow savers’ cash to develop with out having to pay tax on the curiosity above the Personal Savings Allowance (PSA), which is £20,000 for the 2023/24 tax 12 months.