Birmingham Midshires has increased the rates paid on its five year fixed ISA and variable rate ISA accounts.
The 5 Year Fixed Rate ISA is a cash ISA operated by post with a minimum investment of £500 paying 5.00% yearly (4.89% monthly).
Earlier access and transfers out are subject to 365 days' loss of interest in year one, 320 days' in year two, 270 days' in year three, 180 days' in year four and 90 days' in year five.
Additions are permitted whilst the issue remains open, and transfers in are accepted.
The ISA Extra Issue 2 is a no notice postal operated cash ISA with a minimum investment of £1 paying 2.90% yearly (2.86% monthly) and for investments over £20k it pays 3.10% (3.06%).
The rate includes a 1.20% bonus (1.17% at £1 tier and 1.18% at £20K for monthly option) for 15 months. For yearly option interest is paid after 12 months then again when the bonus expires after 15 months.
Withdrawals can be made by cheque, transfers out can be made without penalty, and additions and transfers in are permitted.
The long term fixed rate paying 5.00% is now a market leader in its field and the no-notice postal ISA paying 2.90% it sits amongst the top six no notice ISAs. Both ISAs should appeal to those investors who are happy to bank via the postal system.
Investors will need to ensure they review the position after 15 months when the bonus expires on the variable rate ISA, as the rate is likely to fall dramatically and may no longer be competitive.
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