ISA savers can enjoy a ‘market-leading’ 4.35 percent interest rate with Coventry Building Society’s new two-year fixed rate ISA.
A person can open an account with a deposit of just £1 and can put in up to £20,000, the maximum ISA allowance for this year.
Savers also have the option to transfer funds from other ISAs, using their allowance for the current financial year as well as from the previous year.
The product is available to new and existing customers with the interest rate to last until May 2025.
Customers can open a new fixed rate ISA (217) online, over the phone, by post or in a branch.
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Daniel McDonald, senior product manager at Coventry Building Society, said: “Since the start of the new financial year, we’ve been offering our members a range of accounts for their tax-free savings paying some of the best rates in the market, and today, we’re launching a new two-year fixed rate cash ISA at a market leading rate.
“Whether savers want easy or limited access, or if they choose to fix their ISA interest rate for a couple of years, there’s something for everyone.
“And we make it as straightforward as possible for people to open these accounts and to transfer in their current and previous years’ ISA funds to make the most of their tax-free ISA allowances.”
Earlier this month, the building society launched two fixed rate ISA products, with a one-year account at 4.12 percent and a two-year account at 4.2 percent.
Matthew Carter, head of Savings at Coventry Building Society, said when the two ISA products launched: “Many people will be looking to take action after reviewing their finances as the new tax year begins.
“Fixed rate ISAs are a popular option with savers looking for higher rates of interest as well as those who want a guaranteed rate of return over a set period.”
ISAs are a popular savings option as they come with significant tax benefits. Any interest earned on an ISA is tax-free while any income a person derives from an ISA also avoids tax.
With high levels of inflation over the past year, the Bank of England has continually increased the base interest rate, in efforts to curb spending.
Many banks and building societies have passed on the increases in upping the rates on their ISAs and other savings accounts.
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