AA has made a slight reduction to its two-year fixed rate ISA, but it has maintained its competitive edge and kept a place among the top 10 accounts of its sector.
Two Year Fixed Rate ISA now has a rate of 1.75% yearly, which allows it to retain a coveted place in the Moneyfacts charts.
This account can be opened by post and online with an initial investment of just £1. It must then be managed by post.
While no further additions are allowed, it is possible to transfer in other cash and stocks & shares ISAs. Early access is also possible, although this will result in a loss of interest penalty, the size of which depends on the length of the remaining term. One year or less will result in a 90-day loss of interest, but if there is up to two years remaining, a larger penalty of 180 days' loss of interest will be applied. Transfers out will incur the same penalty.
Despite the reduction, this ISA still has a strong competitive spirit. The rate is still an attractive one and the option to transfer in existing ISAs as well as have early access to funds, albeit with a penalty, adds extra appeal.
Four Moneyfacts Stars have been awarded.
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