Lloyds launches fixed-rate ISA

Lloyds TSB has launched a new fixed-rate individual savings account (ISA), offering up to 3.20% tax free interest.

The ISA is available from this week, and Lloyds guarantees the interest rate for 12 months from the date of account opening.

Accounts can be opened with a minimum deposit of £3,000, and transfers from previous tax years are accepted.

The top rate of interest is paid to those with more than £30,000 in their ISA.

Janet Pope, Lloyds TSB savings and investments director, said: “Now is not the easiest time to be a saver, as interest rates are at an historic low.

According to Lloyds’s research, only 7% of savers believe rates will rise in the next 12 months, whilst nearly one quarter (22%) expect further rate cuts.

“In this unpredictable rate climate, savers are moving towards fixed rate products,” Pope said.

She added: “The security of knowing exactly how much you will earn on your savings is invaluable in today’s uncertain environment.”

Nearly half of Lloyds ISA holders said they will be looking to save in a fixed rate account over the next year.

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