Leeds Building Society has launched three fixed rate tax-free Tessa Isa products with a minimum investment of £1.
The One-Year Tessa Isa pays 5.60 per cent, the Two-Year version returns 5.70 per cent and the Three-Year 5.85 per cent.
Product development manager Stuart Fearn says: “This new Tessa Isa product range offers a guaranteed high interest rate combined with access to funds. The minimum investment is also only £1, making it available to all investors with a Tessa Isa balance to transfer. All three versions are straightforward accounts with no short-term headline bonus rates, other catches or requirements to open linked accounts.
“The product accepts transfers in from other providers. Investors, who potentially have Toisa balances of £9,000 plus interest already earned often in accounts earning much less than is now available and without any rate guarantee, would see their earnings increase substantially by transferring to our new product range.”