UK-based Principality Building Society has announced that it will introduce on April 6, 2009 a new regular saver individual savings account paying a 5% AER tax free, fixed until April 5, 2010.
Principality said that its regular saver individual savings accounts (ISA) helps people make the most of their ISA allowance by encouraging them to save regularly by giving them an interest rate of 5% fixed for a year, providing a guaranteed tax-free return.
To qualify for the ISA, savers need to make a regular monthly investment from as little as GBP20 up to a maximum of GBP300, paid by standing order. Principality said that it suggests savers to set up their standing order to pay in to the ISA at the very beginning of each month so they maximise the interest they earn, which is calculated on a daily basis.
The initial deposit can be made by cash or check, but the following 11 months’ payments are made by standing order. Top-ups can be made by cash, check or standing order.
James Wright, marketing director of Principality Building Society, said: ISAs have always been a must-have for every saver but with the current low-interest rate environment they make more sense than ever before, so it is worrying that many people are unaware of the tax-free benefits of an ISA.
The danger of ordinary savings accounts that pay hardly any interest at all is that people won’t bother to save. That’s why Principality has created an ISA that rewards regular savers with a market-leading rate and a guaranteed income — tax-free. Plus savers get the option to top it up at the end of the ISA year and maximise their ISA allowance.
