Published: 26/02/2010

·         New Flexible ISA offering a market leading 3.50 per cent AER variable

·         Guaranteed minimum rate of 3.50 per cent for 1 year

·         Pays 3 per cent above the Bank of England base rate for 12 months

·         Flexible instant access to your money without penalty

This week, Santander and Alliance & Leicester have kick started the ISA season with the launch of its highly competitive Flexible ISA, a market leading variable rate Cash ISA paying a minimum guaranteed rate of 3.50 per cent AER for 1 year.

Flexible ISA guarantees to pay at least 3 per cent above the Bank of England base rate for the first 12 months; and the rate will not fall below the minimum rate of 3.50 per cent for the first 12 month period, so you're guaranteed a competitive return¹.  Added to that, the account allows penalty free instant access on withdrawals, so savers have the peace of mind of a minimum guaranteed rate but with the flexibility of an instant access account.  Designed to encourage more people to save tax efficiently the account is available to new and existing customers for new ISA subscriptions only with a minimum balance of £1. 

Andrew Hagger from Moneynet commented "Savers seeking a home for their new ISA monies will undoubtedly be attracted by the combination of unlimited penalty free access and a market leading, guaranteed minimum interest rate. The icing on the cake is that if base rate increases in the next 12 months, then so will their ISA returns".