Clydesdale and Yorkshire Banks have launched two new fixed rate ISAs offering a choice of one and five year terms with rates between 3 and 5 per cent.

The minimum opening balance is £2,000 up to a maximum of £3,600 in any one tax year (or £5,100 for people aged 50 by 5 April 2010), excluding transfers in.

Additional deposites up to the full annual ISA allowance (£5,100) can be made after 6th April until the issue closes and existing customers can mandate a transfer to take place in the new tax year.

No withdrawals are allowed except for closure for which there may be a penalty of a minimum £30 loss of interest at five days notice.

Steve Reid, retail director of Clydesdale Bank, said that it is important for investors to shop around this ISA season as there are some very competitive deals.

He explained, ‘To get the best returns on your savings it's important to make the most of your ISA allowance.

‘We now have two great new fixed rate ISAs with the added feature that you will also be able to invest next year's allowance at the same great rate.’

Applications for the 2009/10 tax year must be received by 1 April 2010.