Leeds & Holbeck Building Society is launching a three year fixed rate mini-cash Isa.
The rate is fixed at 6.75 per cent and the minimum investment is £1.
No withdrawals are permitted during the term and closure of the account before maturity will result in a penalty of 90 days loss of interest.
The Society's operations director Chris Radford says: "The new Isa offers customers excellent rates on tax free savings. It is the premier choice for those who want a no nonsense account at a time when interest rates are uncertain.
"The exceptional value of this product emphasises our commitment to pass on mutuality benefits to our members."