Principality over-50s Isa pays 3.8% until 2012Isa allows £1,500 over-50s top-up from 6 October

17 September 2009

Principality Building Society has launched a fixed-rate Isa paying 3.80% AER until June 2012, aimed at over-50s looking to make the most of the new higher tax-free savings allowance.

Principality Building Society

The new Isa launches on 21 September and is available to anyone currently aged 50, or who will turn 50 before the end of the current ISA year on 5 April 2010.

Over-50s able to top up Isa from 6 October

Savers opening Principality’s over-50s Isa will initially be able to invest the current limit of £3,600. When the higher limit is introduced on 6 October, savers will be able to top-up their Isa by £1,500, maximising their full £5,100 tax-free allowance. The top-up will have to be made by the end of October and Principality’s Isa allows transfers in from other providers.

James Wright of Principality commented: 'Over-50s savers have a great opportunity to maximise their investments with the launch of the higher Isa limits, so Principality’s new Isa has been designed to help them make the most of that opportunity as well as giving them a guaranteed return at a great rate.

'Our systems are in place to allow top-ups from 6 October and this new product allows transfers in, inviting savers that are with providers that do not allow top-ups this October.'

Make your savings work harder with Which? Best Buys

Martyn Saville, Which? senior researcher, said: 'This fixed-rate Isa offers a good rate that beats the deals currently available on instant-access Isas. However, you'll be tying your savings up for nearly three years, during which time easy-access interest rates available from other providers may increase, making this offer less attractive. It's vital to choose an Isa or savings account that suits your own circumstances.'

The  Which? interactive cash Isa finder allows you to tailor your Isa search to your needs. And why not maximise the returns from your other savings too? The Which? savings account finder allows you to compare hundreds of savings accounts to find the best for you. Whatever type of account account you're looking for, whether it's fixed-rate, instant-access and branch-, telephone- or internet-based, our interactive savings tool will find the best account.

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