NS&I Direct Isa launched

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NS&I Direct Isa launched

Mon 3rd Apr 2006

An NS&I Direct Isa has been unveiled, with an interest rate of 5.05 per cent per year and a guarantee to stay 0.55 per cent above the Bank of England base rate for at least the next two years.

Up to £3,000 can be invested in the account each tax year, with a minimum opening deposit of £1,000 and minimum further deposits of £250, or £100 by standing order.

The deal also comes with a 100 per cent capital guarantee which NS&I claims it can offer as all of its savings and investments are backed by HM Treasury

Savers who already own an NS&I cash mini Isa and new customers will be entitled to the deal, although investments will not be permitted as transfers from any other Isa providers.

"Our Direct Isa offers customers a great opportunity to save tax-free, with the convenience of 24-hour online access to your account and the additional flexibility to carry out transactions by phone," said John Prout, NS&I sales director.

"It is a straightforward, guaranteed offer and we would not confuse or short-change our customers with short-term introductory rates or any other hidden features."

The NS&I Direct Isa will be available for investment from April 6th onwards.