Coventry Building Society has launched a new tax-free savings account which is available to new and existing members.
The new Four Access ISA (Online) account offers a market-leading rate of 4.90 per cent, and it will be available to open on the building society's website from midday.
Savers can open the account from £1 and they can deposit up to £20,000 for the current tax year.
Bethaney Cozens, savings product manager at Coventry Building Society, said:“The tax bills many savers are now facing has encouraged the take up of ISAs.
Interest rates on savings have been rising recently following 14 consecutive hikes to the Base Rate
“We’ve opened almost as many new ISAs so far this year than the last two years combined, as ISAs have become an increasingly popular option for members wanting to maximise their tax-free savings allowances in a higher interest rate environment.
“Our new Four Access ISA Online offers members a market-leading rate while having flexibility to access their money four times each year for free, and is a great option for savers looking for a home for this year’s ISA allowance.”
The account pays annual variable interest of 4.90 per cent tax-free p.a./AER or monthly variable interest paid at 4.79 per cent tax-free p.a., 4.90 per cent AER.
The account offers four charge-fee withdrawals every 12 months starting from the day the account is opened.
Any additional withdrawals will be subject to a charge equal to 50 days’ interest.
ISA transfers from this and previous tax years’ ISA allowances will be accepted.
There are four different types of ISA, and savers can deposit money into one of each kind of ISA each tax year, which runs from April 6 to April 5.
The annual ISA allowance is £20,000 and savers can put up to £20,000 in one type of account (there is a £4,000 annual limit on the Lifetime ISA) or split it across some or all of the other kinds of ISA.