Fidelity International raises interest rate for ISA Cash Park

Fidelity International has raised the interest rate payable to investors holding cash in its popular ISA Cash Park to 0.2% above the Bank of England base rate.

The offer runs from 19 January to 31 July 2009 and, with base rates recently reduced to 1.5%, means it currently pays investors 1.7%. The previous rate payable was 0.4% under the base rate. The new special offer interest rate compares favourably with the 0.81% average rate of interest paid on instant access accounts from banks and building societies, according to the latest Bank of England figures.

Fidelity's ISA Cash Park enables investors to use their stocks and shares ISA allowance, but defer their fund selection decisions, by placing their investment temporarily in cash. Also available as a cash holding option for Fidelity's existing ISA customers, the ISA Cash Park has proved extremely popular and currently £87 million is held in the facility. When they are ready, investors can switch easily online into Fidelity's extensive range of funds, or into a choice of over 1,100 funds in total via Fidelity's FundsNetwork supermarket service.

Rob Fisher, Head of UK Direct at Fidelity International, says, "The improved interest rate gives investors some reward if they choose the ISA Cash Park option for their ISA this year. It's really important that investors make use of their annual ISA allowances given that they offer valuable tax advantages at a time when we all know that tax rates on individuals are on the way up again."

The ISA Cash Park accrues interest daily and is payable quarterly. There are no minimum or maximum investments, no set up fees, no ongoing fees and no complicated restrictions. Money invested into the ISA Cash Park is held on deposit at The Royal Bank of Scotland on behalf of Fidelity. The rate of interest payable will revert to from 0.4% under base rate at the end of the offer period.

For more information, visit fidelity.co.uk