Alliance & Leicester announces 3% fixed-rate ISA

Alliance & Leicester announces 3% fixed-rate ISA

Santander-owned Alliance & Leicester (A&L) has launched a new individual savings account (ISA) designed to attract customers who may have been put off saving by the current climate of low interest rates.

The one-year fixed rate bond ISA pays interest at 3.00% tax free, with the account maturing on 1 May 2010.

Minimum deposit is £500, and transfers from existing ISAs are allowed.

However, any withdrawals from the account incur a penalty of 60 days interest.

Reza Attar-Zadeh, A&L’s director of savings and investments, said: “Our new one-year fixed rate ISA is ideal for savers who are looking to secure a competitive fixed rate for their tax-free savings in today’s low base rate environment.”

Bradford & Bingley, another Santander-owned bank, has also launched a one-year 3.00% fixed rate bond ISA with a minimum deposit of £3,600.

Transfers from other ISAs are allowed into this account.

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