Aug 4 2006
Investors with funds tucked away in the direct individual savings account (Isa) from National Savings and Investments (NS&I) will now be able to enjoy an interest rate of 5.3 per cent.
Following an increase in the Bank of England base rate 0.25 per cent, interest on the government-backed savings account has been boosted from 5.05 per cent to 5.3 per cent per annum.
The new rate is guaranteed to be at least 0.55 per cent about the base rate until April 5th 2008.
Isas , which are free from income tax and capital gains tax, were introduced by the government in 1999 to encourage more people to save for the future.
Access to the Direct Isa, launched earlier this year in April, is through internet or by phone and investors can put up to £3,000 in the tax-free account.
St James's Place is another organisation offering a range of maxi and mini Isas, for more information click on our free brochures page.
