State Bank of India has launched a new three-year fixed ISA onto the market, earning it an 'excellent' rating for its competitive rate and terms.
Online 3 Year Cash ISA Fixed Deposit pays a competitive fixed annual rate of 2.10%. Versions of the account are available for those who wish to receive interest yearly (all interest must be paid away) and those who wish to compound it (interest will be paid on maturity).
This ISA must be opened and operated online with an initial investment of at least £15,000. Savers should note that an online Instant Savings Account will be automatically opened alongside the ISA for transactional purposes.
Although further additions are not permitted, it is possible to transfer in existing cash and stocks & shares ISAs. It is also possible to access funds early with 30 days' notice and the loss of 1% interest. Transfers out will also incur this penalty.
For those who would prefer not to manage their account online, a branch-based version of the ISA paying the same rate but with a lower minimum investment figure of £5,000 is available.
For savers with a decent-sized savings pot to invest, this ISA is likely to be an appealing choice. Not only does it have the option of compound or paid away interest, but it also allows transfers in and early access, albeit with a notice period and an interest penalty. As a result, this is a competitive and flexible option for the internet investor.
Moneyfacts rating: Excellent
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