AA two-year fixed rate ISA offers 3.50%

AA Savings has added another ISA to its growing range of savings products with a 2-year fixed rate ISA which offers a top-performing 3.50% AER. 

The minimum investment is £1; transfers-in from other ISAs are permitted and applications can be made by telephone or online.

Mark Huggins, director of AA Savings says: "This new ISA underlines our determination to offer the best possible savings options.  It comes hot on the heels of re-launch of the AA Internet Access ISA, an easy-access account with 3.35% AER.

"It firmly establishes our position in the ISA market," adds Mark Huggins.

"Now is the right time to open an ISA and make the most of your tax-free ISA allowance which is 5,340 for the current tax year.

"If you can put money away for a couple of years, you'll get 3.50% interest tax-free up to the maximum cash allowance."

AA 2-Year Fixed Rate ISA

Interest: 3.50% AER
Available from 21 April 2011
Can be applied for online or by telephone and operated by post
Minimum investment £1; maximum £5,340 (the current maximum cash allowance)
Interest calculated daily and paid yearly on anniversary of first deposit Transfers in allowed Access permitted subject to loss of interest 
Applications can be made online at theAA.com/Savings.