Regular savers can benefit from the new fixed rate ISA

Many banks and building societies have been lately criticised for their ISAs.
The Principality Building Society’s regular saver ISA now offers a 4 per cent rate, one of the highest fixed rates available on the market.
Savers are expected to put into their account between £20 and £425 a month, which is scheduled to mature in April of 2011. If savers didn’t reach their full allowance during that year, they will be allowed to top up their account in March 2011.
Nevertheless, if a payment is not made, some money withdrawn or if the account is closed for whatever reason, then the variable ISA rate will be paid, which currently stands at 0.6 per cent.
According to Principality Building Society, the regular saver ISA will allow savers to make monthly contributions to the account with the knowledge that their savings will attract a fixed rate. In addition to that, the interest rate applied to ISA accounts is not subject to taxes, which are expected to rise in the future.
However, it is indeed wrong to assume that many people will be easily able to invest quite a lot already this month.