The Britannia Building Society (BBS) offers five types of ISAs: the fixed rate mini cash ISA; the instant access mini cash ISA; the regular saver mini cash ISA; ISA bonds; and equity ISA’s. It also allows holders of Tessa only ISA’s to transfer their funds into any one of two BBS ISA accounts: the instant access Tessa only ISA; and the 30 day notice Tessa only ISA.
Fixed rate mini cash ISA
The fixed rate mini cash ISA offers investors an interest rate of 5.85 per cent AER, although a minimum investment of £3,000 is required before the account can be opened. Being a cash mini ISA, £3,000 is also the maximum investment permitted. The interest rate is fixed until 5th April 2008, and interest will be added to the account on the first working day after that date. Withdrawals are allowed, although 180 days’ worth of interest will be lost on the amount taken out. Fixed rate mini cash ISA’s can not be topped up - so once money is taken out, it can’t be put back in.
Instant access mini cash ISA
A minimum of £1 and a maximum of £3,000 can be invested in an instant access mini cash ISA. Interest is varied: five per cent AER for accounts holding £1 - £2,999; and 5.05 per cent AER for accounts holding £3,000. If the account is added to in subsequent tax years and eventually tops £9,000, interest of 5.1 per cent AER is paid. Rates are effective as of February 2nd, and are guaranteed not to fall lower than one per cent below the Bank of England’s base rate. There are no penalties for withdrawals.
Regular saver mini cash ISA
The regular saver mini cash ISA allows investors to invest between £20 and £250 every month by direct debit. Payments must be made for 12 consecutive months, while only one withdrawal is allowed. After the 12 months is up, monthly payments can be altered. Interest of 5.35 per cent AER is payable for accounts holding more than £20, and is added the day after the account’s one-year anniversary.
Guaranteed return capital ISA bond
This ISA guarantees a return of 2.29 per cent AER or - if higher - 75 per cent of the growth in the FTSE 100 Index. However, money must be committed - with no withdrawals - for five years. A minimum investment of £3,000 is required.
Three year guaranteed capital ISA bond
A similar premise applies to the three-year guaranteed Capital ISA Bond, although the term is fixed at three years, only 65 per cent of the growth in the FTSE 100 Index is secured, and if the FTSE falls the original balance is returned, rather than an investor earning 2.29 per cent AER. A minimum investment of £3,000 is required.
Five year guaranteed capital ISA bond
The return will be 35 per cent gross/6.19 per cent AER if the FTSE 100 is equal to or higher than the start value after five years - with the original amount returned if not. A minimum investment of £3,000 is required.
Up to £7,000 can be held in a maxi equity ISA, with the choice of investing in the stock market or fixed interest based funds. Equity ISA’s are supplied through BBS’ partnership with AXA Sun Life
Instant access Tessa only ISA
Exactly the same as an instant access mini cash ISA, only for funds transferred from other Tessa accounts.
30 day notice Tessa only ISA
Up to £9,000 can be invested in a 30 day notice Tessa only ISA. Interest can be paid yearly or monthly, with interest of 5.25 and 5.30 per cent AER available for accounts holding above £3,000 and £9,000 respectively.
Written Exclusively by AdFero for ISA Guides
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