Principality Building Society has a new cash ISA, the Promise ISA, which offers a bonus year after year.
The Promise ISA is a cash ISA designed for savers who don’t want to lock their money away. It offers an interest rate of 2.30% tax-free* p.a. /AER**, inclusive of a 0.80% unconditional bonus for the first year.
The savings account is open to new and existing customers and allows customers to transfer in previous years subscriptions as well as deposit new subscriptions up to the £5340 limit for the 2011/12 tax year.
Unlimited withdrawals can be made in the first 12 months (subject to 30 days notice or 30 days loss of interest) and after 12 months savers that make no more than 2 withdrawals per tax year will be given a fixed, conditional bonus of 0.5% payable on the core variable rate of 1.5% AER**.
The minimum opening deposit for this account is £500.
Kate Murray, Principality’s Savings Manager, said: “Many providers have looked to boost savers returns by offering introductory bonuses that enhance the return for a short period. And while this is excellent news for savers at a time when the Bank of England base rate is at an historic low, it does mean that they need to stay savvy and watch out when the account reaches its first anniversary.
“The Promise ISA aims to offer savers a consistent, tax-free return by rewarding savers that are committed to leaving their money untouched and building a nest egg, Best buy rates can be there one minute and gone the next – consistency is the key for savers to ensure a good level of return.”
* TAX FREE means the interest you earn is exempt from UK Income Tax and Capital Gains Tax.
**AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid and compounded once each year.