Leeds & Holbeck Building Society has unveiled a cash individual
savings account (Isa) for investors who have maturing tax exempt
special savings accounts (Tessas.)
The 2-year Tessa Isa is suitable for investors who are looking for
somewhere to put their Tessa cash but do not want to tie it up
over the long-term. As a cash Isa, it could be attractive to
investors who are looking for a fixed rate of interest without
depending on the performance of stocks and shares.
The Isa offers investors with at least £100 an interest rate of 6 per cent a year for two years. Existing customers get an extra 0.25 per cent loyalty bonus for six months. If they make withdrawals during the two-year term, they will lose 90 days' interest.
According to Moneyfacts on July 2, 2001, the Leeds & Holbeck Isa has the
most competitive rate compared to similar products. The next competitive rate is from Julian Hodge Bank, at 5.80 per cent a year. In addition to the lower rate, it does not allow any withdrawals, which may make it not so suitable for investors who may need an emergency supply of cash.