This high return is also combined with the flexibility of unlimited access to 25% of the amount invested at any time, without notice or penalty, and a minimum opening balance of only £1.
Furthermore, this product allows savers to transfer in all of their ISA subscriptions from previous years, which could as much as £43,200, plus any interest accrued. Leeds Building Society will also accept the additional £1,500 tax-free cash allowance, which is available to anyone born on or before 5th April 1960.
Kim Rebecchi, Leeds Building Society's Sales and Marketing Director said:
"We have seen very high ISA inflows this tax year and are very aware that tax-free savings are extremely important to our customers. That is why we have launched this ‘best buy' and taken the decision to accept the additional £1,500 allowance for the over 50s.
"The opportunity to earn a fixed rate of 4.60% interest tax-free for five years, from as little as £1, is a market leading offer and provides outstanding value. Furthermore, our new 5 Year Fixed Rate ISA delivers flexibility and peace of mind with unlimited withdrawals of up to 25% of the capital allowed at any time, without notice or penalty.
"With many ISAs in the market paying less than 1%, investors could be missing out on at least £1,609 of tax-free interest a year which, in this current low interest rate environment, is a significant difference.
"The fantastic rate of 4.60% is the equivalent of 7.67% for higher rate tax payers and 5.75% for basic rate tax payers, and over fifteen times and eleven times Bank Base Rate (BBR) respectively.
"There is no doubt that investors should review their existing savings and consider transferring their ISAs, to ensure they are maximising their tax free return."
