Lloyds TSB launches new fixed rate cash ISA

Lloyds TSB has launched a new Fixed Rate Cash ISA with a highly competitive interest rate of up to 6.50 per cent.

Consumers have the option to boost the interest rate on their Fixed Rate Cash ISA to up to 8 per cent, with a 1.5 per cent tax free bonus, if they also invest an equal or greater amount in a Scottish Widows Investment ISA.

Liz Hogbin, savings and investments director, Lloyds TSB said: “With base rates looking likely to fall over the coming months, many savers will value the security that a fixed rate offers. This Fixed Rate Cash ISA is perfect for people who have been saving in an ISA for a few years, have a nicely growing nest egg and want to make the most of their savings.”

Research conducted by the bank revealed that approximately 40 per cent of Britons already have a cash ISA and a third say that they are willing to transfer their ISA in order to get a better rate. Eight out of ten (81 per cent) ISA holders admitted they would prefer to have a guaranteed fixed rate on their cash savings as opposed to one linked to base rate as they anticipate the base rate falling in 2008.

Liz Hogbin continues: “Our new bonus interest rate ISA offer is designed to encourage customers to utilise their maximum tax free savings allowance. At the moment just one in ten consumers has an Investment ISA but almost half admit, in the current economic environment, they would be more likely to open one if they were guaranteed a higher rate on their cash savings. Our 1.5 per cent bonus provides consumers with that added security and gives them the confidence to dip their toe into stock market investment.”

For more information about Lloyds TSB savings and investments, visit lloydstsb.com.