Alliance & Leicester plans to launch maxi and mini Isas offering cash and stocks and shares components.
The cash Isa will be Catmarked and will be passbook based. It will offer a interest rate of 5.9 per cent and be available direct or through A&L's branch network.
The stocks and shares Isa will consist of four funds, including three actively managed and a tracker fund.
Charges on the managed funds will range from 3 to 5 per cent initial and 1.25 per cent annual, while the tracker will have an initial charge of 3 per cent and an annual charge of 1 per cent.