Cheshire Building Society is offering savers a new Fixed Rate Mini Cash ISA ideal for investors looking to take advantage of this year's tax-free savings allowance, before the end of the tax year on the 5th April 2008.
The 12 Month Fixed Rate Mini Cash ISA offers a competitive 6.00 % gross/AER which is paid on maturity.
An ISA is the perfect product to consider for all investors and a great starting point for first time savers. It is one of the few tax-free savings opportunities available but individuals must take action before the end of the tax year if they are to benefit from the 2007-2008 allowance.
The Cheshire's Fixed Rate Mini Cash ISA has a guaranteed rate of interest for a full 12 months, offering investors much needed certainty in an uncertain rate environment. Savers can invest a minimum of £1,000 up to a maximum amount of £3,000 if the account is opened on or before the 5th April 2008 and up to a maximum amount of £3,600 if opened on or after the 6th April 2008, to reflect the new Government ISA allowances for 2008/9 tax year. No further additions or withdrawals are permitted within the 12 month period.
Another key advantage of the Cheshire's Fixed Rate Mini Cash ISA is its flexibility for investors who are looking to transfer previous years' ISA subscriptions into a new account. By transferring funds to a more competitive rate before the end of the tax year, investors can maximise their previous year's investment and increase the savings they can generate during the 2008/09 tax year in one move.
David Gibson, Senior Marketing Manager at Cheshire Building Society comments: "ISAs are a great way to invest tax-efficiently as you don't have to pay capital gains or income tax when you decide to withdraw the funds.
"There are few tax-free investments permitted from the Inland Revenue, so it's important to make the most of your ISA allowance each year. For example, a saver who has fully funded their Cash ISA allowance since 1999 could have as much as £27,000 saved up tax-free, so with the new financial year upon us, now is a great time to look at Fixed Rate Mini Cash ISAs to help invest for the future."
The 'AER' stands for Annual Equivalent Rate and illustrates what the interest rate would be if it was paid and compounded once each year.
The 'Gross' rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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