Principality increases core rate on Promise ISA account

Principality has increased the core rate on its variable Promise ISA account by 0.30% for new and existing customers.

The Promise ISA now pays a competitive 2.60% TAX-FREE p.a./AER for the first year (inclusive of a 0.80% unconditional bonus).

For the first 12 months, ISA savers can enjoy unlimited withdrawals with the Promise ISA, subject to 30 days' notice or 30 days' loss of interest.

After 12 months, savers that make no more than two withdrawals per tax year will be rewarded with a fixed, conditional bonus of 0.50%, payable on the core variable rate of 1.80% AER.

Available to both new and existing customers, the account allows ISA customers to transfer in previous years' subscriptions and offers the flexibility to deposit new subscriptions up to the limit of £5340 for the tax year 2011/12 - allowing savers to keep all of their ISA subscriptions in one place if they wish.

ISA customers can also choose whether to have their interest paid monthly, to supplement their income, or annually on 6 April.

Kate Murray, Principality's Savings Manager, said: "The increased rate brings the Promise ISA account more in line with 1 Year fixed rate ISAs, while still allowing customers access to their money at just 30 days notice.

"Best buy rates can be there one minute and gone the next - consistency is the key for savers to ensure a good level of return. Today's rate increase ensures that even without the bonus, both new and existing Principality savers will enjoy a competitive interest rate. For those customers that are committed to leaving their money untouched and building a nest egg, the Promise ISA offers a reward, year on year."