May 22 2007
Rising consumer demand for individual savings accounts (Isas) amid increases in interest rates has prompted a new product to be brought to market, it has emerged.
A three-year fixed rate arrangement of 5.85 per cent has now been made available on the latest Isa product from the Scarborough Building Society, which has cited the "phenomenal popularity" of similar offerings as the reason behind the release.
"With interest rates rising several times in recent months, we hope our new Isa will meet the needs of people looking to lock into the great returns now available," commented Tony Burdin, Scarborough's head of group marketing.
Earlier this month, the Bank of England's monetary policy committee opted to increase the base rate of interest for the fourth time sine last August, which could make saving for children a more attractive prospect for many consumers.
Meanwhile, Ross Dalzell from Alliance & Leicester recently suggested that awareness of some of the potential benefits of Isa investments are becoming more well known across the UK.
