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Governor Money launches top fixed-term Cash Isa

New 3-year cash Isa tops Best Rate table

Piggy bank with stack of money

If you’re able to lock your cash away in a fixed-rate bond, you could get a higher rate

Governor Money enters the Which? Best Rate table with the launch of a three-year fixed-rate Isa.

The new deal from Governor Money takes them straight to the top of the Which? Best Rate 3-year fixed-term table. This highly competitive account pays an impressive 4% AER fixed until 10 February 2015. The internet-operated account requires a minimum investment of £100 and accepts transfers in from other Isa providers.

An attractive interest rate

Jo Langenhan, savings expert at Which?, said of the new deal: ‘The latest fixed-rate Isa account from Governor Money is great news for savers, especially if you have not used up your tax-free cash Isa allowance (£5,340 this year).

‘However, it’s worth noting that you will earn just 0.5% until the bond’s start date on 10 February 2012. If you wait until nearer that date to put your money in, though, chances are the account will already be fully subscribed and no longer open to new customers. If  you have already used up your cash Isa allowance, check out our Best Rate 3-year fixed term deals for ordinary savings accounts.

Beware of penalties

To get the higher interest-rates usually offered by fixed-term accounts, savers need to ensure that they are able to tie their money up for the required period as partial withdrawals or early closure will be subject to a penalty fee.

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