State Bank of India has introduced a two-year fixed rate ISA to the market, securing it a coveted place near the very top of the Moneyfacts charts thanks to its highly competitive rate and terms.
Online 2 Years Cash ISA Fixed Deposit pays 2.00% yearly (or on maturity), the joint highest rate for its sector.
This account must be opened online but can then be managed online, in branch or by post. A minimum deposit of £5,000 is required. Savers should note that an Online Instant Access Savings Account will automatically be opened alongside the ISA for transactional purposes.
Transfers in of existing cash and stocks & shares ISAs are permitted but further additions are not. Withdrawals are also not accepted, although it is possible to close the account early with the loss of 1.00% interest, provided 30 days' notice is given. Transfers away from the account will also incur this penalty.
For those who would prefer not to open their account online, an alternative version of the ISA paying the same rate permits in-branch account opening.
This newcomer has certainly made waves in the fixed ISA market thanks to its highly attractive rate. Savers who are searching for decent returns are likely to welcome its competitiveness along with the flexibility offered by the option to close the account early, albeit upon the loss of interest.
Moneyfacts rating: Excellent
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