ISA’s at the Yorkshire Building Society

ISA’s at the Yorkshire Building Society March 2

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There are currently six ISA’s available from the Yorkshire Building Society (YBS). They are: the 30-day notice ISA; the e-ISA; the fixed rate anniversary ISA; ISA plus; rollover TESSA-only ISA; and the variable rate TESSA-only ISA.

30 day notice ISA

The 30 day notice ISA is a mini cash ISA, which means up to £3,000 can be invested into the account each tax year. YBS does, though, insist on a minimum investment of £10. As the name suggests, money can only be withdrawn from the account after 30 days’ notice - failure to do so is subject to the loss of 30 days’ interest. The minimum withdrawal is £10. Interest can be paid either monthly of yearly, with more attractive prospects offered to those who choose the latter option. AER rates per annum were 5.75 per cent in January for accounts where interest is paid yearly, and 5.6 per cent for those paid monthly. Interest is guaranteed not to fall more than one per cent below the Bank of England’s base rate charge

e-ISA

An initial deposit - minimum £10 - must be made by cheque in order to open an e-ISA account, but thereafter all transactions can be completed online. Once again, it is a mini cash ISA and so the maximum the account can hold is £3,000 for each tax year, but only until 2010. The interest rate is 5.4 per cent, and interest is calculated daily. However, it is only added to the account’s balance on 31 March each year and on account closure. Withdrawals can be made on demand, as along as each withdrawal is in excess of £10.

Fixed rate anniversary ISA

The fixed rate anniversary ISA offers a fixed rate of interest over a fixed term. Withdrawals and additions to the investment can only be made in the “anniversary” month of opening the account, but by way of recompense YBS offers a guaranteed interest rate of 5.6 per cent for accounts holding more than £100 which claim interest yearly, and 5.46 for accounts holding over £100 which claim interest monthly. As a mini cash ISA, maximum investment is £3,000.

ISA Plus

The ISA plus also guarantees that the rate of interest will not fall more than one per cent below the Bank of England’s base rate charge, although - unlike the 30 day notice ISA - it does not penalise the holder for making a withdrawal. Because of this, though, the interest rate is less attractive: 5.1 per cent for those having interest paid annually; and 4.98 pre cent for those choosing the monthly option (figures correct as of January 28th 2007). Minimum investment is £10.

Rollover Tessa-only ISA

The rollover Tessa-only ISA is only available to people who already own a Tessa-only ISA. However, if you hold one with another ISA supplier it is possible to transfer it over to the YBS rollover Tessa-only ISA account. A 5.6 per cent rate of interest is available for annual interest accounts, and 5.46 per cent for those paid monthly. These rates only apply to investments of £100 or above.

Variable rate Tessa-only ISA

A similar theme here: this account is only available to those who already own a Tessa-only ISA, and it is possible to transfer an account from another ISA provider to the YBS equivalent. The variable rate Tessa-only ISA account offers an interest rate guaranteed to be no more than one per cent below the Bank of England base rate, and is currently touting rates of 5.1 per cent for annual interest accounts and 4.98 per cent for monthlies.

Written Exclusively by AdFero for ISA Guides

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