Nottingham BS RS Cash ISA 5%

simonsmithsays

refluxer said:

Was just trying to get my head around this one - it's certainly a fairly unusual account but the fixed interest rate could make it a good bet for anyone who knows for a fact that they'll end up paying tax on their savings interest and who doesn't have the lump sum needed to make use of their full ISA allowance in one go now but can manage those monthly contributions, in which case 5% is currently a higher rate than the handful of providers who allow continued contributions into their 1 year fixed rate cash ISAs are offering. 

While an easy access ISA is an obvious alternative, the fixed nature of this RS ISA would obviously pay off if and when rates start to fall. Any comparison would assume that the same monthly contributions are made into each, of course. 

Being branch-only limits this already fairly niche product even further, although 8 different counties is a bigger spread of branches than a lot of the smaller building societies have.

The similar one last year was £1600 per month - again at the same rate with the residual being able to made up in the final month.

Nottingham have been offering these RS ISAs pretty consistently for over a decade.