Principality announces new ISA range for New Tax Year

Principality announces a new ISA range for New Tax Year including a market leading 3 Year Fixed Rate ISA and a Monthly Income option for its ‘Promise' ISA.

New Fixed Rate ISA Range:

For 2011/2012 ISA Year allowance only:

1 Year Fixed Rate Cash ISA pays 3.10% Tax-Free p.a./AER
Allowing transfers-in:

2 Year Fixed Rate Cash ISA pays 3.30% Tax-Free p.a./AER
5 Year Fixed Rate Cash ISA pays 4.40% Tax-Free p.a./AER

Market Leading:

3 Year Fixed Rate Cash ISA paying  4.17% Tax-Free p.a./AER (Transfers-in permitted)

Each of Principality's Fixed Rate ISAs allow additional deposits up to the maximum 2011/2012 Cash ISA allowance of £5340, while the ISA remains on sale.

Principality's Savings Manager Kate Murray, said: "For savers looking for a guaranteed return in the current climate we have an attractive range of Fixed Rate ISAs to choose from and our 2, 3 and 5 year ISAs all allow transfers in. We would encourage savers to review their current ISAs for the new tax year, to ensure that they are making the most of their existing ISA savings, as well as their new 2011/12 allowance."

Promise ISA:

For ISA customers looking to boost their monthly income, Principality's Promise ISA pays up to 2.30% Tax-free p.a./AER inclusive of a 0.80% unconditional bonus for the first year - with the choice of having interest paid annually or monthly.

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

After 12 months, Promise Isa customers 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.

Principality's Savings Manager, Kate Murray, said: "As the squeeze on household budgets continues, many savers may be looking for ways to boost their monthly income. Our Promise ISA allows previous years' subscriptions to be transferred in, so that customers can also benefit from a return each month. Continued speculation around a base rate increase may be deterring some savers from locking their money away over the longer term, the variable aspect of our Promise ISA Account; coupled with the 30 day notice access offers these savers more flexibility."

ISA Builder Plan:

For savers who want to take the hassle out of ISA season, the ISA Builder plan links a fixed rate bond with a fixed rate ISA, to create a convenient and easy way for savers to make sure that they do not miss out on their annual Cash ISA allowance.

Customers can choose to open Principality's new ISA Builder Plan as either a 3 Year or 5 Year version. When opening the 5 Year Plan customers must invest a minimum of £21,360 into the Builder Bond account, which pays 4.50% gross/AER and £5340 into the ISA Builder, which also pays 4.50% AER (tax-free).  The Plan is designed to then automatically transfer up to the full annual Cash ISA allowance from the Bond to the ISA, for each of the next 4 years.

The three year ISA Builder Plan works in the same way and pays a fixed-rate of 3.75% AER (tax free) on the ISA Builder and 3.75% gross/AER on the Builder Bond. The minimum opening investment for the 3 year Builder Bond is £10,680.

With the Cash ISA allowances increasing annually in line with inflation, customers will be allowed to top-up the Builder Bond, to take advantage of these increases and ensure that they take full advantage of their maximum Cash ISA allowance in every year of their Plan.

e-ISA:

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.