Cheshire Building Society, which is part of the Nationwide Group, is today (Friday 14 December) launching ISA Saver.
ISA Saver is a cash ISA paying a competitive 2.50% tax-free/AER*, which includes an introductory fixed bonus of 2.00% tax-free/AER* until 31 July 2014. The rate applies to balances of £1,000 or more.
The new account accepts transfers in, allowing savers to deposit both new and previous years' ISA subscriptions. Savers can open ISA Saver either online or by phone, but transfers in requests must be completed online. The account is managed by post and customers can make unlimited penalty-free deposits and withdrawals, within the cash ISA limits.
Cheshire Building Society will write to customers before the bonus expires to notify them that their bonus is coming to an end.
Richard Marriott, Nationwide's head of savings, said: "In the current environment it's more important that ever to make the most of your tax-free cash ISA allowance. ISA Saver pays a competitive rate of interest and allows customers to transfer both current and previous years' ISA subscriptions.
"Savers transferring existing ISA funds into ISA Saver will also benefit from the Society's promise to pay interest from the day we receive their transfer application**. This means they won't lose out on valuable interest while the ISA transfer process takes place."
Direct Cash ISA - Issue 4 was withdrawn from sale from close of business on Thursday 6 December.
Notes to editors:
* AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year. Tax-free is the contractual rate of interest payable where interest is exempt from income tax.
** Provided that the funds are free to move and not subject to any notice period.
||ISA Saver (Issue 1)
||Online or phone, managed by post
Transfer in requests completed online
||Unlimited, free withdrawals
||Yes - transfer in requests must be completed online
|Min. opening balance
|Min. operating balance
|Maximum operating balance
|ISA Saver (Issue 1)
|£1 - £999 (variable)
** Includes 2.00% bonus fixed until 31 July 2014.
Apply online at thecheshire.co.uk or by phone on 0808 144 3880.
The Cheshire Building Society is a Trading Division of Nationwide Building Society.