Leeds Building Society extends Isa savings account allowance
Savings account provider Leeds Building Society is allowing customers to add £1,500 to their tax-free deposits, even if they have already filled the Isa quote for 2009/2010.
The company has taken up the Financial Services Authority's offer of the allowance, and those who have already reached the maximum investment for their 2009/2010 Isa savings account can still take advantage of the deal.
Transfers from other providers are also permitted as while Leeds Building Society is allowing its customers to take advantage of the extra tax-free interest, different banks may not have made the decision to take up the offer.
Starting from October 6th, Isa savings account owners will be able to put an extra £1,500 away providing they were born on or before April 5th 1960, thanks to the new rules.
Kim Rebecchi, director of sales and marketing for Leeds Building Society, said: "We have seen record Isa inflows this year and are very aware that tax-free savings are extremely important to our customers and that is why we have taken the decision to accept this additional allowance."
"Many of our very competitive Isas also allow customers to transfer their previous ISA subscriptions plus interest. Therefore, we expect many Isa customers, who currently have their tax-free savings with other providers who are not accepting this additional allowance, to transfer to the Society."
Isa savings accounts with the firm currently pay up to 4.05 per cent interest, which is the equivalent of 5.06 per cent and 6.75 per cent for basic and high tax rate payers respectively.
Research conducted by Moneynet.co.uk last month showed that attractive cash Isa savings account deals with higher interest rates were disappearing from the market in June.
According to the financial advice website, despite the fact we are only three months into the tax year, Isa savings account providers have either reduced interest rates on or got rid of the products altogether.
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