Principality Building Society is offering savers a market-leading interest rate of 4.2 percent with its Online ISA.
Customers have the flexibility to make withdrawals at any time and replace the funds without this affecting their annual ISA allowance.
A person can also transfer over unlimited amounts of money from ISAs from previous tax years, as these are not part of their current year’s ISA allowance.
The account also has the benefit that if a customer has £100 or more deposited, they will get at least 14 days notice if the interest rate is going down.
The account has a basic variable rate of 3.8 percent along with a bonus rate that brings the overall rate to 4.2 percent.
Savers must have at least £1 in the account at any time and they can deposit up to £20,000 each tax year into the account, as per the ISA allowance rules.
Once the balance reaches £250,000, a person can no longer pay any more funds into the account.
A person can only have one Online ISA in their name. The account can be opened and managed online.
Interest is calculated on a daily basis and paid into the account on April 6 each year. A person will get the interest rate with the bonus for the first 12 months.
After 12 months, the rate will drop to the rate without the bonus. The building society will notify customers when this is about to happen.
An individual must be aged 16 or over and a UK resident to open an Online ISA. The account has to be linked to a current account in the person’s name with another UK bank or building society.
The first deposit must be made within five working days of opening the account or it will be closed.
Current Principality customers with an e-ISA or Web ISA Issue 1 to 7 account who want to set up an Online ISA and transfer over their funds, can contact the building society via their account.
They can use the ‘New message’ option to send a ‘Savings general enquiry’ message to organise the transfer without needing to open a new account.
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