Investors are being encouraged to review their savings and consider transferring their ISAs to ensure they're maximising their tax-free return as Leeds Building Society launches a five-year fixed-rate account paying 4.60% tax-free.
As well as letting savers transfer all of their ISA subscriptions from previous years plus any interest accrued, the ISA offers unlimited access to 25% of the amount invested at any time, without notice or penalty. Its minimum opening balance is just £1.
Representatives for Leeds Building Society say they will also accept the additional £1,500 tax-free cash allowance, available to anyone born on or before 5 April 1960.
Kim Rebecchi from the mutual acknowledged that tax-free savings are "extremely important" to customers, which is why the additional £1,500 allowance for over-50s is being accepted.
"With many ISAs in the market paying less than 1%, investors could be missing out on at least £1,609 of tax-free interest a year which, in this current low interest rate environment, is a significant difference," she added. "There is no doubt that investors should review their existing savings and consider transferring their ISAs."
The 4.60% rate is the equivalent of 7.67% for higher-rate taxpayers and 5.75% for basic rate taxpayers.
