Abbey launches 5.5% Super Direct ISA

Abbey launches 5.5% Super Direct ISA

Abbey has launched a new range of ISAs paying interest at up to 5.5%.

The Santander-owned bank has unveiled three new individual savings accounts (ISAs) – the Reward ISA, the Direct ISA, and the Super Direct ISA.

New savers can place up to A?3,600 in the Reward ISA, which pays interest at 1.5% plus a 2% bonus at the end of the first year if the savings have been left untouched.

Savers looking to transfer balances from existing ISAs can open a Direct ISA, paying interest at 2.5% variable for the first 12 months. After 12 months a variable, tiered rate will apply.

The Super Direct ISA offers the opportunity of even greater returns, paying interest at 5.5% variable for the first 12 months. To open this account, savers must place an equivalent amount into an Abbey capital guaranteed investment or qualifying investment.

Reza Attar-Zadeh, Abbey Director of Savings and Investments, said: “It’s vital that taxpayers understand the benefits of saving in an ISA and how to make the most of their allowance; as un-utilised allowances are lost forever.

“Arguably, it’s never been so important to use all the available tax free allowances in order to maximise returns.”

However, consumer rights website Creditchoices.co.uk said that savers should take their time when choosing an ISA for 2009-10.

“As the deadline for ISA investment (5 April) approaches, it is possible that we will see even better deals pop-up on the market, as the banks fight for our cash,” said Chris Eagle, Creditchoices.co.uk commercial manager.

Savers have been hit by five successive Bank of England base rate cuts, with the base rate now at a record low of 1%. The base rate is expected to be cut again later this week.

Tags: , , , , ,


Comments (1)

Trackback URL | Comments RSS Feed

  1. Mike P says:

    My wife has a Super Direct account and wanted to fund this year’s allowance from her non-ISA ABBEY savings account. Unbelievably she had to accept a cheque which she must POST AT HER OWN COST to Santander by snail mail.

    Is this what they do in Spain? Rubbish!