Intelligent Finance rates effective from 28 January 2007

Following the decision by the Monetary Policy Committee to raise the Bank of England base rate, Intelligent Finance is passing on the full 0.25% to its savings and ISA customers.

DAS moves in line with base to 5.05%

The Bank's direct access savings (DAS) will pay 5.05% AER/Gross (variable) from £1 (previously 4.80%). Around half of the bank's customers offset their savings against their mortgage and this change continues to deliver a 'real rate' of over 8% for standard rate tax payers and over 11% for higher rate tax payers.

Mark Parker, Managing Director, Intelligent Finance said: “People continue to be dazzled by simple headline rates alone and fail to realise that offsetting can give them a 'real rate' as high as 11%. Getting a competitive mortgage and savings rate doesn’t need to involve moving money every six months as offsetting offers both long-term value and flexibility."

Mini Cash ISA moves up

ISA savers will receive 5.35% AER/Gross from £1 (previously 5.10%). This is 0.10% above Intelligent Finance's rate guarantee, which promises to pay at least Bank of England base rate until 31st December 2007.

Offset Mortgages

Tracker offset mortgages start with rates as low as 5.09% and non-offset tracker mortgages start with rates as low as 5.39%. Intelligent Finance's SVR will move from 6.30% to 6.65% – ensuring that the bank continues to remain a top four player in terms of competitive SVRs available.

Current Account

The bank continues to offer great value on its current account and is not increasing charges or debit fees for customers, with the credit interest rate remaining at 3.00% AER/Gross.