The Internet 1 Year Fixed Rate ISA from Birmingham Midshires pays a guaranteed, tax free 3.15% AER for 12 months.
What's the deal?
Birmingham Midshires's Internet 1 Year Fixed Rate ISA pays a guaranteed 3.15% AER for 12 months on balances from £500 to £3,600.
Withdrawals and closures are permitted during the fixed-rate term, although they are subject to a penalty of 90 days' interest.
What makes it great?
The 3.15% AER paid on this account is the best rate currently available on a standard, internet-based 1 year fixed rate cash ISA.
As such, the account provides you with reassurance that you'll be earning a decent return on your savings for the next 12 months without locking up your money long term - protecting you against further rate drops and giving you the chance to move your money during the next tax year should interest rates increase.
What's the catch?
A £500 minimum investment does apply to this account and, unlike some other fixed term cash ISAs, you are not able to transfer balances from previous years' ISA allowances to this account.
Additionally, if you're aged 50 or over it's worth bearing in mind that come October the amount you will be able to invest in a cash ISA will increase to £5,100.
Technically, you should be able to top up your cash ISA with the additional £1,500 should you wish. However, Birmingham Midshires have confirmed that you will only be able to do this if they are still offering the same issue of this 1 year fixed rate cash ISA account at that time. Should they decide to withdraw it before 6th October, 2009 you will not be able to take advantage of your additional allowance until the following tax year.
If you're unlikely to take full advantage of your cash ISA allowance anyway this isn't likely to be a problem. However, if you are planning to invest the maximum £5,100 come October this is something to consider.
We have done our very best to make sure that the information included in this Deal is accurate. However, sometimes offers can be withdrawn or changed at the last minute so please do check that you're able to redeem this Deal before parting with any money, or going out of your way to take advantage of the offer.
