Leeds & Holbeck Building Society is introducing two new mini cash Isas for customers with very different ideas of risk.
The tracker Isa is aimed at the cautious investor and will track the Bank of England base rate for three years.
The FTSE Isa, on the other hand, is for the more adventurous investor. This will give a return of 29.5 per cent over a three year term. However it will only give this if the level of the FTSE 100 index after three years is higher than the starting level. There is no minimum level that the FTSE 100 must rise by.
In the event that the FTSE 100 index stays at the same level or decreases, the investor's original capital will be returned in full.
Achieving the 29.5 per cent return is feasible because the FTSE has been stable over the long term. It has not seen any major swings, although there is always the possibility of a crash right at the end of the three year term. From August 15, 1997 to August 17, 2000, the FTSE went from 4865.8 points to 6532.05 points.