Scarborough Guaranteed ISA Plus announced

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Scarborough Guaranteed ISA Plus announced

Tue 14th Mar 2006

A Scarborough Guaranteed ISA Plus deal has been launched today with an initial interest rate of 5.05 per cent.

The product is a tax-free limited issue Mini Cash ISA that gives customers the opportunity to invest between £1,000 and £3,000 per year, with a stepped interest rate set at 5.05 per cent until March 31st 2007.

On this date the rate will shift to 4.75 per cent until March 31st 2009, at which point it will revert to the society's variable Mini Cash ISA rate.

Investors in the Scarborough Guaranteed ISA Plus will be allowed to access 50 per cent of their balance without notice or penalty from April 1st 2007.

According to the society, savers should be using an ISA such as the one offered by Scarborough in order to take advantage of their annual tax-free allowance.

"In 2004-05, of the nine million or so people who took advantage of a Mini Cash ISA, the average savings balance was just £2,200 – meaning most did not make use of their full £3,000 tax-free allowance," said Tony Burdin, head of retail strategy at Scarborough.

Customers who take up the Scarborough Guaranteed ISA Plus must maintain a minimum balance of £1,000 and will be permitted to close or transfer the deal before maturity, although this will be subject to 120 days loss of interest.

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