Alliance & Leicester improves ISA products

Last week, Alliance & Leicester increased the rate on its new Premier ISA to 8.10% gross pa/AER, making it a leading rate for tax efficient savings.

The Premier ISA product is offered as an incentive to those who switch to the bank’s competitive Premier current account.

From today, the bank will also offer a new version of its popular Direct ISA account – Direct ISA Issue 3. This new account will be available to both new and existing customers and it is available from all Alliance & Leicester branches or online at alliance-leicester.co.uk.

The Direct ISA Issue 3 offers:

5.40% gross pa/AER, including a 0.40% bonus until 30 April 2008
Easy access using Telephone or Internet Banking
Minimum balance: £1
Maximum investment dependent on ISA regulations i.e. £3k in any tax year
Transfers of existing ISA balances will be accepted
Deposits/withdrawals are made from/to a linked current account* using Telephone or Internet

Ross Dalzell, Marketing Manager for Savings at Alliance & Leicester said: “We have increased the rate on our new Premier ISA and improved our Direct ISA offer. Alliance & Leicester’s approach is to offer our best rates to customers who use direct channels, especially the internet, and to reward customers who have their main bank account with us.”

Dalzell continues: “Our Direct ISA has proved to be extremely popular, offering great rates and the convenience of 24 hour internet access. Tax-payers would need to find an account paying 6.75% - even more for higher rate tax payers - to match the rate on Direct ISA Issue 3.”

*The linked current account can be with Alliance & Leicester or any other provider.