For those who are looking at where to put next years’ ISA allowance, Coventry Building Society has announced the launch of a new Variable Rate ISA on Saturday 6th April. The Poppy ISA will be paying 2.50% tax free/AER, including a bonus of 0.50% for the first 12 months. The rate is guaranteed to be at least equal to 2.50% until 5th April 2014, but transfers of previous ISAs are not permitted. In addition an annual donation will be made by the provider to The Royal British Legion.
Also worth a mention is the top-paying Variable Rate ISA that accepts transfers from previous Cash ISAs. The Cash ISA from First Direct pays 2.96% tax free/3% AER on balances above £40,000. You must hold a First Direct current account to open the account. There are lower rates available if you have less than £40,000 to invest. There are no withdrawal restrictions and you can apply online, by telephone or by post.
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