Skipton Building Society has launched a fixed-rate cash ISA offering savers 6.5 per cent gross.

The product has a minimum investment of £50, a maximum of £3,600 for the current tax year and a fixed interest rate of 6.50 per cent gross per annum from 7 July 2008 to 14 December 2009.

The interest is paid at year-end, midnight on 14 December 2008, then on maturity (14 December 2009) and interest can be capitalised or transferred to another Skipton Building Society account.

Steve Aldous, general manager at Skipton BS, says, ‘Cash ISAs provide a tax-efficient way of saving. Because you don’t pay tax on your interest, ISAs provide the kind of returns you can’t get elsewhere. With the additional benefit of a fixed rate, you get protection from fluctuating interest rates.’

Withdrawals must be a minimum of £50 and are subject to 90 days’ loss of interest. On maturity, the account becomes a Skipton Cash ISA, which currently has a rate of 5.25 per cent.

For more information call, 08457 171 777 or visit, www.skipton.co.uk