Bristol & West 1yr bond@5.55% until 5/4/06

sly_dog_jonah

This Mini Cash ISA recently came onto the market. Minimum deposit is £3000, and withdrawals are allowed but subject to an interest penalty.

From their website:

"Our fixed rate ISA bonds offer you the opportunity to invest your money for a fixed term (which can be from as little as 6 months or up to 3 years) and also give you the certainty of a guaranteed interest rate until the Bond matures. You can withdraw your money during the fixed term subject to a notice period or loss of interest and in exchange for your commitment, we guarantee that our interest rates are always attractive. However, if you withdraw your money you cannot repay funds back in.

Remember, the current tax year ends on April 5th, so if you haven’t yet used your Mini Cash ISA allowance there’s still time.

If you are looking to invest a lump sum of £3,000 for a year, to receive guaranteed growth and a great tax-free rate, click here to see what we have to offer."

Seems to beat the socks off other 1 year fixes.

I have emailed them to ask if they allow transfers in from previous years' Mini Cash ISAs. EDIT: It would seem they don't, on either the Branch or Phone/Post accounts.

With both M&S Money and Abbey reducing their Base-rate + 0.X% guarantees on April 5th, this looks like a great deal. Could be good for people who can't be bothered with switching from the First Direct in Oct when they will probably be inundated with transfer-out requests.

deemy2004

Yeh looks good, but with money market rates in the up and up, better rates are around the corner, say Mid April, though if you need to invest now then go with it.