NDF Administration and Credit Suisse First Boston are launching a Tessa-only Isa to take advantage of the £21bn worth of Tessas maturing this year.
The Tessa Triple Plus is aimed at people looking to reinvest the capital but not the interest saved in their matured Tessa.
Its features include 8 per cent a year tax-free interest in the pre-investment period which is rolled into the Tessa Triple Plus on three start dates – May 9, June 11 and July 11.
The cash is then invested, receiving total capital security at maturity provided by a AA-rated bank if it is held for the full five-year term.
It also has a five-year FTSE 100 index-linked investment up to a maximum of 100 per cent tax-free growth potential.
NDF and CSFB says over all five-year periods from December 31, 1991 to December 31, 2000, the average return from an investment of £9,000 in a Tessa Triple Plus would have been £13,542, a tax-free profit of 50 per cent.
Minimum investment is £5,000 and maximum is £9,000 – plus £3,000 cash if the account is set up with a mini cash Isa.
NDF Administration managing director Antony Stack says: “Many people automatically roll over their maturing Tessa into another plan from the same provider but they are under no obligation to do so.”