Saffron Building Society has unveiled a new stepped rate ISA, which has been awarded an 'excellent' rating for its attractive rate and terms.
4 Year Step NISA has an overall rate of 2.50% yearly (year one: 1.75%, year two: 2.20%, year three 2.60% and year four: 3.45%).
This branch and postal-operated account requires an initial investment of at least £500.
Further additions and transfers in of existing ISAs are not permitted. It is, however, possible to access funds prior to maturity, although this will result in closure of the account and the loss of 270 days' interest. Transfers away from this account will also incur this penalty.
This account is also available as a fixed rate bond for savers who have already utilised their ISA allowance.
This account offers savers a great incentive to keep their money invested by increasing the yearly rate paid on any money saved. The overall rate of 2.50% is highly competitive and compares well against other competitors in this sector. However, the account does lack flexibility, and savers must be aware that accessing their funds early will result in a hefty penalty.
Moneyfacts rating: Excellent
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