Dunfermline launches two cash ISA products
The Dunfermline has launched two new cash ISA products as savings hunters look to get the best deals.
The one year at 3.00% AER Tax Free and the two year at 3.25% AER Tax Free, fixed rate cash ISAs are amongst the best buys on the Scottish High Street. Savers under 50 are also being reminded that the limit on the amount of money that can be put into a cash ISA is being raised to £5100 from April this year.
Since October 2009, savers over 50 years of age have been able to save £5100 this tax year in Cash ISA, but anyone under that age is restricted to £3600.
From the start of the new tax year all customers will be allowed to ‘top up' their cash ISA with an additional £5100.
Niall Fraser, Head of Branches at the Dunfermline commented: "We are delighted to be able to offer two short term fixed rate products, at a time when people are looking really closely at how they can get the best return on their money."
Pierre Williams, Head of Research, MoneyExpert.com, said: "The savings market is starting to thaw after a year in the deep freeze and Dunfermline's one and two year offers are a really encouraging sign that providers are starting to loosen up. The new higher tax-free cash ISA allowances for all savers from April 6th make it even more important that savers take advantage.
"Savers need to think about how prepared they are to lock their cash away as the chances are that rates could rise this year and prompt even better deals in the coming months. With the strong possibility of interest rate rises this year they may be wise to look at fixed rate deals of no longer than a year. When it comes to one-year deals they will struggle to find a better tax free rate than Dunfermline's 3 per cent deal."
Both accounts have a minimum £100 investment and the 1 year product, which matures on 30th April 2011has 60 day penalty for early withdrawals, this is 120 days for the 2 year product which ends on 30th April 2012. Interest is paid annually for both accounts. Customers are reminded that it is only possible to open an ISA with one provider per tax year and the Dunfermline welcomes transfers from other providers.