Saga launches two new ISAs

Saga Personal Finance has announced plans to launch two new ISA products on 1 April, paying interest at up to 2.95% tax free/AER.

The One Year Fixed Rate Cash ISA pays annual interest at 2.95% tax free/AER, whilst the Saga One Year Fixed Rate Monthly Interest ISA pays interest at 2.91% tax free or 2.95% AER.

Minimum deposit for both accounts is £1, and interest is calculated daily. No notice needs to be given to withdraw money.

Saga, which specialises in financial services for the over 50s , said the ISAs represent ‘good value’ considering the average ISA rate is 2.09% and the Bank of England’s base rate is at an all time low of 0.5%.

Andrew Goodsell, Saga Group chief executive, said: “Savers, and pensioners in particular, are seeing their savings income reduced as a result of successive interest rate cuts.”

The group called upon the government to increase Cash ISA allowances from the current level of £3,600 to benefit those who rely on savings for income.

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