Fidelity extends interest rate offer for ISA Cash Park

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

The offer which originally ran from 19 January to 31 July 2009 will now continue until 30th September 2009. With base rates still at a reduced 0.5%, it means it currently pays investors 0.7%. The previous rate payable was 0.4% under the base rate.

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. It is also available as a cash holding option for Fidelity's existing ISA customers. 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 Personal Investments at Fidelity International, comments: "Although we are seeing signs of increased investor confidence and evidence that money is returning to both bond and equity markets, cash is still a popular option for wary investors. As interest rates remain at historically low levels, we have decided to extend our interest rate offering to the end of September. This means that investors still have the chance to beat the base rate."