(PRWEB UK) 30 March 2012
BM Savings has launched a new 3 and 5 Year Inflation Rate ISAs with an innovative twist that ensures savers never lose out: the deposit based ISAs use the annual inflation rate to calculate the interest rate they pay, but also come with a fixed rate of interest as back-up should inflation fall.
The new 3 and 5 year savings accounts will pay interest each year on the anniversary of the accounts’ start date, with savers either receiving the Retail Prices Index (RPI) Annual Inflation Rate1 or a supporting fixed rate (3.70% Tax Free / AER for 3 year, 4.30% Tax Free / AER for 5 year), whichever is greater.
Savers are therefore guaranteed to receive at least 3.70% per annum on the 3 year or 4.30% per annum on the 5 year Inflation Rate ISA: if the Annual Inflation rate exceeds those fixed interest rates, savers will receive the higher Annual Inflation Rate instead.
John Bianco, Head of Savings at BM Savings, explains: “Savings accounts linked to the annual rate of inflation offer a great way of maximising your savings, and they have been rewarding customers with high levels of return in recent years. Of course, inflation can fall as well as rise and we recognise that in uncertain economic times customers also value solid guarantees. The new BM Savings Inflation Rate ISA offers the best of both worlds: customers can submit their savings to the high potential rewards of the inflation rate while also benefiting from the safety net of a great fall-back fixed rate. In short, annual interest rates of 3.70% on the 3 year or 4.30% on the 5 year are the worst case scenarios for savers.”
Key features of the BM Savings Inflation Rate ISAs
- Minimum opening deposit of £500
- Maximum balance: Total ISA allowance including ISA transfers
- Customers receive an early deposit fixed rate of 0.50% tax-free/AER from the day the deposit is made until the Start Date of the account
- During the term, customers will either receive the March RPI Annual Inflation Rate (typically published in April) or a fixed rate, whichever is greater each year.
5 Year Inflation Rate ISA RPI Annual Inflation Rate or 4.30% Tax Free / AER
3 Year Inflation Rate ISA RPI Annual Inflation Rate or 3.70% Tax Free / AER
- Interest will be paid yearly: it can be paid to a nominated account or paid back into the Inflation Rate ISA
- Customers can withdraw or close the account within 14 days of the first deposit being made, after which withdrawals will only be allowed subject to a 5% charge on the amount withdrawn: the Inflation Rate ISA is not suitable if a customer requires access to their savings over the term of the account.
- A bond version of each term is also available.