Money News

Saga: New 3.9% cash ISA

Saga is offering a high ISA rate for those willing to lock cash away for two or three years.

Saga, the organisation for the over-50s, has unveiled a new range of cash ISAs offering up to 3.9%.

Saga offers 3.5% on its two-year fixed rate ISA for amounts up to £30,000 and 3.6% over £30,000.

The three-year fixed rate ISA has a rate of 3.9%.

41% of over 50s are planning to use their full ISA allocation of £10,200 in the coming tax year, according to Saga’s research.

Some 95% of those polled said they were aware of the increased ISA limits this year for the over-50s. And 37% have topped up their ISAs since the over-50s allowance rose in October.

Some 81% of over-50s now have an ISA.

Andrew Goodsell, Saga executive chairman, said: “With low interest rates it is important that people make their money work hard for them, I am pleased to see that savvy over-50s are making the most of the increased ISA limits.”

Saga also has a Funds ISA with no initial or annual fees. Customers can invest across four funds from Fidelity, with growth and income options.

The firm’s Stocks and Shares ISA allows access to a range of investments including equities, index tracking exchange-traded funds (ETFs), gilts and bonds with no annual fees.