Newcastle is offering a market-leading rate of 1.2 per cent on its 12-month fixed rate Isa and a 1.4 per cent rate on its 12-month bond.
The Isa is available with a minimum opening deposit of £500, and withdrawals or transfers of any amount are permitted with 90 days notice.
Its 12-month bond requires a minimum deposit of £500 and allows withdrawals and transfers of up to 25 per cent of the initial investment without notice or penalty.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Savers looking to invest over the shorter-term will be delighted by the best buy deal on offer from Newcastle Building Society.
“It boasts an attractive fixed rate of 1.4 per cent over one year, with both an annual and monthly interest option available, and can be opened in branches or online.
“The account benefits from some flexibility, as those who unexpectedly require access to their cash can withdraw 25 per cent of the amount they invested without penalty, an option that will only add to its appeal.”
Tom Adams, head of market research at Savings Champion, said: “In terms of the Isa market as it stands today it is the top rate for 12 months on the market. For savers looking for that type of Isa it is fantastic news.
“Any move to the top of the table is always good news. While we are not seeing the highs of previous years it is a step in the right direction and hopefully we will see more providers getting better rates on the table for savers.”
simon.allin@ft.com
