Newcastle Building Society has unleashed three new fixed rate ISAs into the market, with the five-year version pushing straight into the top 10 of the Moneyfacts charts.
Five Year Fixed Rate ISA (Issue 1) has a rival-beating rate of 2.40% per annum (2.37% monthly) until 25.11.19.
Meanwhile, the one-year version has a rate of 1.40% yearly (1.39% monthly) until 25.11.15 and the two-year variant has a rate of 1.70% per annum (1.69% per month) until 25.11.16.
These ISAs can be opened by phone, online, in branch and by post with a minimum initial investment of £500, and can then be managed by all methods except by phone.
Further additions are welcome while the issues remain open, and transfers in of cash and stocks & shares ISAs are also permitted.
Early access and transfers out of the accounts are possible, although this will incur a penalty of 90 days' loss of interest for the one-year ISA, while the two-year version will incur a 120-day loss of interest penalty and early withdrawal from the five-year account will result in a 180-day interest loss.
The five-year ISA offers a very attractive rate, which is sure to pique the interest of savers. This account also offers investors a lot of flexibility, with the option to choose a monthly interest account and make further additions. The ability to access funds early is also quite unusual for a fixed rate account, and although this will incur a penalty, its flexibility is likely to prove to be a bonus for savers.
Four Moneyfacts Stars have been awarded.
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