Principality launches 5% ISA

| April 2, 2009 | 0 Comments
Principality launches 5% ISA

Principality Building Society yesterday launched a new individual savings account (ISA) paying interest at a fixed-rate of 5.00% AER tax free.

Between £20 and £300 can be saved in the ISA each month.

If the maximum amount isn’t saved each month, then the account can be topped up in March 2010 to ensure that the full £3,600 allowance is used.

The ISA’s launch comes as research by Principality shows that two thirds of British savers do not have an ISA.

A poll by the building society found that just 28% of people in the UK have either got or are planning to open an ISA.

This is despite the fact that 84% said they put money into a monthly savings account.

One in five (21%) of those polled did not know that the main benefit of an ISA is tax free interest.

James Wright, Principality’s marketing director, said: “ISAs have always been a must-have for every saver, but with the current low-interest rate environment they make more sense than ever before, so it is worrying that many people are unaware of the tax-free benefits of an ISA.

“The danger of ordinary savings accounts that pay hardly any interest at all is that people won’t bother to save.”

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