Kick-start the new tax year with a great ISA rate

Alliance & Leicester’s Premier ISA account paying 8.10% pa gross/AER, which is offered to customers opening an Alliance & Leicester Premier Current Account, will only be available until the end of this month – close of business on Monday 30 April 2007.

The market leading Premier ISA offer is designed to incentivise the many people who don’t take advantage of their annual ISA allowance by providing an unrivalled interest rate for tax efficient savings.

While eight out of ten savers (84%) cite a good rate of interest as the most important factor when choosing a savings account, less than half this number (40%) identify not paying tax on their savings as an important consideration. Yet 20% in tax is automatically deducted from the interest paid on all non-ISA savings accounts – reducing the actual interest rate on an account paying 5% to just 4% and making the rate far less competitive than many savers might think.

The extra saving in tax offered by a cash ISA can really add up over the years - a modest £30 a year tax saving would have totalled over £1,000 in the eight years since cash ISAs were first introduced in 1999.

Ross Dalzell, Manager for Savings at Alliance & Leicester said: “While many people leave it until the last minute each year to take advantage of their annual ISA allowance, I would urge savers to turn this habit on its head and kick-start the new tax year by saving in an ISA now.”

Dalzell continues: “What better way to get the new tax year off to a great start, than with an ISA paying a market leading interest rate of 8.10%? The clock is now ticking and I would urge anyone who hasn’t already taken advantage of this offer, to do so before time runs out.”

A cash ISA offers customers a simple and straightforward way to save, along with instant access to their funds and no risk to capital, unlike a stocks and shares ISA or other stockmarket investment.

The Premier ISA offers:

A market leading interest rate of 8.10% pa gross/AER, guaranteed to be at least 1.00% above the base rate until 30 April 2008.
Minimum investment £1, maximum investment £3,000 in any tax year (dependant on ISA regulations).
ISA funds from current and previous tax years cannot be transferred in.
Funds accessible via Internet and Telephone Banking through the nominated Premier current account – no charges or penalty for withdrawals.
Minimum age 21 years.
Interest paid annually on 1 January.