Leeds Building Society has launched a five-year fixed-rate ISA offering investors a rate of 4.05 per cent.

This is the equivalent of 6.75 per cent for higher rate taxpayers and 5.06 per cent for basic rate taxpayers.

Furthermore, this product allows savers to transfer all of their ISA subscriptions from previous years, plus any interest accrued. There is also unlimited access to 25 per cent of the amount invested at any time, without notice or penalty.

Kim Rebecchi, director of sales and marketing, says, ‘This Five-Year Fixed-Rate ISA delivers an excellent guaranteed return, flexibility and peace of mind. Some ISA customers, who have invested the maximum possible, could have £43,200 invested in an ISA, plus accrued interest.

‘With many ISAs in the market paying less than 2 per cent, investors could be missing out on almost £885 of tax-free interest which, in this current low interest rate environment, is a significant difference.’

The minimum investment is £1. For more information, customers can call into their local branch, visit the website at www.leedsbuildingsociety.co.uk, or call the savings hotline, on 08450 540 995.