Tax-free savings
2nd July 2008
A major high street bank has announced a tax-free account that may come as welcome news to consumers looking for ways to boost their savings to protect themselves against the credit crunch.
The Alliance and Leicester yesterday (July 1st) announced the launch of a "competitive" Easy ISA savings account that offers customers a rate of 6.00 per cent gross pa / AER.
With a minimum balance of £1, the account should be available to most savers and allows easy customers to access their funds via telephone or internet banking.
Hetal Parmar, manager for savings at Alliance & Leicester said: "A Cash ISA is just a simple savings account, except that the interest is paid without tax being taken off. Our ISAs have proved to be extremely popular, offering great rates and the convenience of 24 hour access."
Mr Parmar said that those paying basic rate tax would need to find an account that paid 7.50 per cent to match the rate given on an Easy ISA.