Legal & General is launching two fixed interest Isas, the Performance Bond Isa and Secure Bond Isa.
The Performance Bond Isa gives 7 per cent income or 40 per cent growth after five years. Capital is returned in full provided the FTSE 100 in the last three months is not lower than the initial FTSE level.
The Secure Bond Isa has no stock market exposure and offers 5 per cent a year or 28 per cent growth after 5 years.
L&G retail investments director Michael Hayden says: “The recent base rate cut points to savings reducing. These products represent an opportunity to secure fixed returns new before rates fall further.”