ISA’s at the Derbyshire Building Society

ISA’s at the Derbyshire Building Society March 19

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The Derbyshire currently offers three types of ISA’s: the Derbyshire cash ISA; the 55 plus ISA; and the 2 year fixed rate cash ISA. All three are cash mini ISA’s, which means the maximum investment in each tax year is £3,000. The deadline for investing in ISA’s for the current tax year in April 5th.

Derbyshire cash ISA

The Derbyshire cash ISA is a variable rate mini cash ISA. The minimum investment is £10, while £10 must be in the account at all times for it to remain open. Presently, the interest rate offered to accounts holding £10 to £9,000 is 5.05 per cent AER. However, if the account holds £9,000 or more an interest rate of 5.1 per cent is secured (for this to occur additional funds must be placed in the account over a number of years). Both rates are subject to change. Withdrawals can be made without notice and without penalty, although transactions must be above £10.

55 plus ISA

To be eligible to hold cash in a 55 plus ISA, applicants must be over the age of 55. However, the rewards for being of an advanced age are obvious: an interest rate of 5.65 per cent AER is currently being offered for all accounts holding more than £10, although from April 6th 2008 this rate will be reduced to 5.25 per cent. However, both rates are subject to change. As with the Derbyshire cash ISA, the minimum account balance and opening account balance is £10, while transactions of £10 or more can be made without penalty at any time.

2 year fixed rate cash ISA

The 2 year fixed rate cash ISA offers a fixed interest rate of six per cent AER until maturity on April 30th 2009. In return for a higher rate of interest - and in contrast to the previous two offerings - the 2 year fixed rate cash ISA has a minimum opening balance and a minimum balance of £1,000. What’s more, although withdrawals and transfers are allowed, a charge equivalent to 120 days’ interest is incurred.

Written Exclusively by AdFero for ISA Guides

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