New Cash ISA launched by Cheshire Building Society

Cheshire Building Society has launched a brand new cash ISA paying a competitive 3.06% AER tax-free (variable) on balances of more than £1,000. The rate includes an introductory fixed bonus of 2.06% AER tax-free until 30 September 2013.

Open to new ISA subscriptions only, Direct Cash ISA - Issue 1 is available to those savers who have not started to use their 2011/12 cash ISA allowance of £5,340. Savers can open Direct Cash ISA either online or by phone and are able to make as many deposits and withdrawals as they like by post without loss of interest.

Cheshire Building Society will write to customers around a month before bonus expiry to notify them that their bonus is coming to an end.

Matthew Wyles, Nationwide's Group Distribution Director, said: "With only two months to go before the end of the tax year, we are conscious that there are many who have not used a penny of this year's cash ISA allowance.  It is important to make the most of this year's allowance as you don't get many things in life tax-free. If you don't use it, you will lose it forever.

"So with that in mind, we are launching the Direct Cash ISA. It's an account that offers savers the best of both worlds - a competitive rate to make the most of their tax-free allowance combined with the benefits of easy access. If you're trying to find the balance between rate and access then this account should certainly fit the bill."