Innovative new ISA launched by AA Financial services

AA Financial Services this week launched a new ISA which enables savers can split their tax free savings between fixed and variable rate products within one online account.

The one year fixed deal pays 1.76% and the two year fixed pays 2.01%. The easy-access variable product offers 1%, with no introductory bonus and transfers in are permitted.

A spokesman for AA Financial Services said: “This proposition is at the fore of the savings market and offers a remarkable level of flexibility for savers.  It allows the customer the opportunity to divide their funds between a higher interest fixed rate and an easy-access variable rate, which can all be managed easily online.

“The AA ISA also accepts transfers in, enabling savers to consolidate their ISA savings under one roof and get competitive interest rates on their entire ISA pot.”

Andrew Hagger, personal finance analyst from Moneycomms.co.uk, said: “This is an innovative move from AA and will appeal to consumers looking for a competitive fixed rate but with the added option to keep an element of their tax free funds in an easy access account in case they need to get at it in a hurry.

“Usually it’s a choice of a variable or a fixed rate option, but with this new AA ISA the customer has the flexibility to be able to apportion their savings in a way that works best for their circumstances.”

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