Skipton launches new fixed rate ISA

Skipton Building Society has launched a new Fixed Rate Cash ISA with the great rate of 6.50% gross.

Steve Aldous, general manager, said, "Cash ISAs provide a tax-efficient way of saving. Because you don't pay tax on your interest, ISAs provide the kind of returns you can't get elsewhere. With the additional benefit of a fixed rate, you get protection from fluctuating interest rates."

Key features - Fixed Rate Cash ISA

Available to individuals aged 16 and over that are UK residents who have not subscribed to another cash ISA in that tax year not have exceeded the overall allowance at £7,200 if monies also invested in a stocks and shares ISA

Fixed interest rate of 6.50% gross pa from 7 July 2008 to 14 December 2009

Minimum investment of £50, maximum investment £3,600 for the current tax-year - by cheque or transfer only

Additional investments allowed up to the maximum ISA allowance of £3,600 for the 08/09 tax year by cash (branches only), cheque or transfer

Interest paid at year-end midnight 14 December, the first being 14 December 2008, then on maturity. Interest can be capitalised or remitted to suitable SBS account or bank account

Transfers in from other ISA providers are allowed

Withdrawals are subject to 90 days loss of interest and are subject to minimum balance of £50

On maturity the account becomes a Skipton Cash ISA, current rate 5.25% gross

For more information, visit skipton.co.uk.