The 1 Year Fixed Rate Cash ISA from Chelsea Building Society guarantees a tax free return of 3.5% on your savings for the next 12 months.
Product Details
Chelsea Building Society - Fixed Rate Cash ISA 1 Year
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What's the deal?
The 1 Year Fixed Rate Cash ISA from Chelsea Building Society pays a guaranteed, tax free 3.5% on account balances until 22nd November, 2010.
The minimum investment needed to open the account is £3,600, however, individuals over the age of 50 are able to take advantage of their new increased allowance and invest up to £5,100 in the account this tax year.
Transfers from other Cash ISA providers and other cash ISAs held with the Chelsea Building Society are accepted with the maximum investment set at £100,000.
What makes it great?
The tax free 3.5% paid on this account is the best return currently available on a 1 year fixed rate Cash ISA. The account also stands up well against the other standard 1 year fixed rate bonds on the market providing a very competitive return for those who pay tax on their savings.
The account guarantees that your money will earn a decent rate of interest until 22nd November, 2010 giving you rate reassurance for the next year. However, as the account only runs for 12 months you'll have the freedom to move your money to a more profitable home thereafter should interest rates rise in the meantime.
Who would it suit?
The account is most suited to individuals who are looking to secure a fixed return on their savings in the short term and are happy to forgo access to their money in return.
You will need to be able to invest a minimum of £3,600 when you open the account but as transfers from other cash ISA providers are permitted you can always take the opportunity to move your money if the rate you're earning elsewhere isn't as competitive.
As the account is offering savers over the age of 50 the chance to top up their 2009/2010 ISA contribution to take advantage of the new £5,100 allowance this makes the account suitable for individuals of all ages.
What's the catch?
The Chelsea Building Society's 1 Year Fixed Rate Bond can only be opened in branch or by post which limits its accessibility somewhat.
Furthermore, as it's a fixed rate account withdrawals are not permitted for the duration of the account term. Should you decide to transfer your money to a different ISA provider during this period an interest penalty of 180 days would be applied, significantly denting your return.
What's the alternative?
A 1 year fixed rate return of 3.33% is available with the Bank of Cyprus's Fixed Rate Cash ISA Issue 2. What's more, this account can be opened online with as little as £1. Savers over 50 are able to invest up to the £5,100 maximum while those under 50 can save up to £3,600 in the account.
Transfers in from other ISA providers are accepted. However, as with the Chelsea Building Society's offering, withdrawals are not permitted during the account term and closures are subject to 180 days loss of interest.
Another alternative is Saga's Two Year Fixed Rate ISA which offers a return of 3.85% on balances from £1 for those over the age of 50. While the 2 Year Fixed Rate ISA Saver from the Halifax offers a rate of 3.75% on balances from £500 to all.
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.
