BM Savings launches 5% ISA

Published by Rebecca Rutt on 29 March 2011.
Last updated on 31 March 2011

5%

BM Savings has launched a market-leading fixed-rate cash ISA for the new tax year.

At 5% for five years this is the highest-paying ISA on the market but as it's for the new tax year's allowance of £5,340, new accounts can't be opened until 6 April.

Like most of the top-paying accounts this is a limited offer, so savers will need to act quickly to benefit. However it is possible to apply now and to transfer in existing ISAs which will be credited to the account in the new tax year.

The rate is fixed for five years and a minimum deposit of £500 is required.

Withdrawals are allowed but are subject to a loss of interest of between 90 and 365 days depending on how much longer the account has left to run. The account is operated by post but you can apply by phone.

For those still looking for a home for this year's ISA allowance the best long term fixes come from Northern Rock and Skipton Building Society which both pay 4.5% for five years and Halifax, Cheshire Building Society and Derbyshire Building Society which are paying 4.4%

Read our round-up of the best ISAs available here

Before this launch there were only nine accounts around beating inflation after the current rate of inflation hit 4.4%.

Check the full range of inflation busting accounts here.

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