Principality increases rates for new Fixed Rate ISA range

Principality Building Society has increased rates for its new Fixed Rate ISA range. All of Principality's Fixed Rate ISAs allow additional deposits while the ISA remains on sale.

Principality's previous range of Fixed Rate ISAs, including 1, 2 and 5 Year, will be withdrawn at close of business on Thursday 24 February.

Kate Murray, Principality's Savings Manager, said: "The clock has started ticking, with just over one month to go to make the most of this year's tax relief.  According to our research in Wales, a huge 63% of ISA savers in the region haven't yet made full use of their 2010/11 allowance.

"There is no doubt that ISAs offer a protective wrapper from the tax-man but we understand that finding an ISA account to suit your needs can be a confusing task. In the current climate, savers will be looking to find an account that meets their accessibility needs and offers a competitive return - we believe that there is something for everyone in our full ISA range."

Designed for savers who don't want to lock their money away:

e-ISA 2:

For those looking for instant access to their ISA savings, Principality's e-ISA Issue 2, pays 2.80% Tax-Free p.a./AER. This includes an introductory bonus of 1.00% for the first 12 months following ISA opening. Customers manage their ISA entirely online, giving them control over their savings.

Promise ISA:

Principality's variable rate Promise ISA account offers a competitive rate of 2.30% tax-free p.a. /AER, including a 0.80% unconditional bonus for the first year.

For the first 12 months, ISA savers can enjoy unlimited withdrawals with the Promise ISA, subject to 30 days' notice or loss of 30 days' interest.

After 12 months, savers who make no more than two withdrawals per tax year will be rewarded with a fixed, conditional bonus of 0.50%, payable on the core variable rate of 1.50% AER.