Leeds Building Society launches new ISA product

One provider of personal and business bank accounts recently announced the launch of a new ISA product for savers eager to find an offering with the best interest rates available in the new tax year.

Leeds Building Society has launched a new fixed 4.16 per cent rate three year ISA.  The new offering is further noteworthy because the building society is permitting access to one quarter of savers’ stored cash without penalising the saver or requiring advance notice of them either.

As the 2011-2012 tax year has seen the ISA allowance raised to £5,340, Leeds Building Society’s director of sales and marketing, Kim Rebecchi, stated that she expects the new offering will prove to be popular due to the flexibility and value it provides to savers.

Customers are urged to act swiftly to avoid missing out on this new deal, Ms Rebecchi stated, adding that the new ISA savings account will be available for a limited time on a first come, first served basis.

In related news, the building society is set to be one of many financial service providers poised to begin offering Junior ISA products to savers starting from 1 November this year.  However experts have been critical of the new programme, stating that many will not benefit from the new government initative.

Money Maxim managing director Mark Bower stated that he doubts the new financial product will mean good news for a significant proportion of UK savers.

The Coalition government initially designed the new ISA as a replacement to the now-defunct child trust fund initiative. Savers will be permitted to deposit as much as £3,000 every year tax-free in the accounts.

Despite this Mr Bower remarked that he struggles to see how introducing the Junior ISA will make any kind of serious difference to the average working family in the UK.

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