Mutual helps savers get the most from their ISA allowance
It may be seven weeks until the current tax year ends, but one Building Society is encouraging savers to get ready for the next tax year now.
With the first day of the new tax year, April 6th, falling on a Bank Holiday, savers may not be able to make their ISA deposit as many banks and building societies will be closed and customers may be on holiday.
On Tuesday 21st February, 2012 The Cambridge Building Society will launch a 6% ISA reserve account to house savers' ISA allowance until the 6th April, ensuring that customers receive the maximum interest possible with the least difficulty.
The convenient automatic transfer from the reserve account into an ISA will mean that the four day bank holiday will not affect savers and the four day interest will not be lost.
The feeder account, although not an ISA, allows people to set aside their 2012/2013 £5640 ISA allowance from the 21st February 2012, obtaining a rate of 6.0% Gross p.a. / AER (4.8% Net) up until Friday 6th April when the funds will automatically transfer over to one of The Cambridge's six ISA products, as chosen by the customer.
The ISA reserve account is available nationwide through The Cambridge's 18 branches and its Cambridge based Customer Contact Centre 0845 601 3344.
Andy Lucas, Commercial Director at The Cambridge Building Society says: "This account has been very popular in the past, giving customers peace of mind that their funds will be transferred into an ISA of their choice, without them having to worry about getting to a bank or building society on and around the 6th April.
"With the first day of the new tax year falling on a Bank Holiday, this is a time when most people may not be around to transfer funds into their ISA or they may wish to do so but their bank or building society will be closed.
"The ISA reserve account takes the pressure off the customer and ensures that they are receiving a good rate of interest up until the 6th April 2012 and then the funds are transferred into their chosen ISA account."