Innovative ISA schemes offer ‘extra' tax-free help to savers

People in the East Midlands are being offered the opportunity to double their ISA savings power - and earn nearly £200 annually in extra interest.

The Nottingham has just launched its new Cash Extra and Extra Premia accounts, which are linked to its attractive range of Individual Savings Accounts (ISAs). Both accounts have been created to sit alongside an ISA account, enabling savers to double their annual tax-free savings to £7,200. Tax payers will pay interest on the linked account, but the after tax rate will match the tax free ISA rate.

The accounts can be opened with a deposit starting at just £10 and savers can make unlimited withdrawals and deposits.

"The knock-on consequences of the Bank of England's decision to reduce interest rates in recent months is the major reduction in the returns savers have been receiving," commented Clare Roberts, savings product manager at The Nottingham.

"Savers account for a majority of our business - with seven savers on our books for every borrower we have.

"That's why we have decided to introduce two innovative savings accounts - which offer people who choose to use our 32-strong branch network the opportunity to earn a savings rate, equivalent to that paid on our ISAs, on two different accounts.

"To ensure our customers continue to benefit from competitive savings accounts, we have also increased the rate payable on our ISA Premia to 2.5% with effect from 1ST April - that's a rate five times higher than the current Bank of England base rate."

An initial deposit of £500 is required by individuals who would like to open an ISA Premia account and just £10 is needed to open a Cash ISA.

A typical individual investing £3,600 in an ISA Premia account and the same amount in an Extra Premia for the full tax year - and making no withdrawals - would earn £190 interest.

The new accounts can be opened when you pay into either an ISA Premia or a Cash ISA at The Nottingham.

To find out more information about our new accounts or existing ISAs, visit thenottingham.com