Two new ISAs have been launched recently which allow account-holders to withdraw funds during the fixed rate term, a relatively rare option on these types of products.
Northern Rock’s Fixed Rate E-ISA Issue 9 comes with a three-year term and the interest rate has increased with this issue by 0.25 per cent to 4.25 per cent. A minimum investment of £1 is required and customers can make additional deposits for up to 30 days after the issue has closed.
Early access to the account is permitted, but those doing this will need to accept the loss of 120 days’ interest. The savings account is available online for over-16s.
The AA has also launched a Two-Year Fixed Rate Cash ISA, with an interest rate of 3.5 per cent. Again, a minimum investment of £1 is required and additions can only be made whilst the issue is open. Anyone wanting to access their account before the term is up will lose 180 days’ interest in year one and 90 days’ interest in year two. The account is for anyone over 16 and operates by post only.
A spokesperson for Moneyfacts said, “The ability to make withdrawals during the term will be welcomed by investors, especially as this is becoming a rare feature on fixed rate products.”
