Alliance & Leicester launches new cash ISA paying 6.25%

Alliance & Leicester is launching a new ‘best buy’ version of its popular Direct ISA account – Direct ISA Issue 4. The Direct ISA Issue 4 is a mini cash ISA and will be available from Friday 8 February at Alliance & Leicester branches or online at alliance-leicester.co.uk.

Direct ISA Issue 4 offers:

A best buy rate of 6.25% gross pa/AER, including a 1.00% bonus until 31 May 2009
Easy access using Telephone or Internet Banking
Minimum balance: £1
Maximum investment dependent on ISA regulations (£3,000 in the current tax year, and £3,600 per tax year from 6 April 2008)•
Transfers of existing ISA balances will be accepted
Deposits and withdrawals are made via a linked current account* using Telephone or Internet

Ewan Edwards, Manager for Savings & Investments at Alliance & Leicester comments: “Our Direct ISAs have proved to be extremely popular, offering great rates and the convenience of 24 hour access. Tax-payers would need to find an account paying 7.50% - even more for higher rate tax payers - to match the rate on Direct ISA Issue 4.”