Britannia has introduced a new one-year fixed rate ISA paying 6.3% tax-free fixed to 30 September 2009. It's available from Friday 18 July, but can only be opened with an investment of £3,600. Tim Franklin, managing director of Britannia, said: "The new ISA is available to new and existing savers looking to take advantage of their tax-free allowance.

"The rate means that savers are getting a good return on their investment, plus the peace of mind that their money is in safe hands with Britain's second-largest building society."

Last year, research by Britannia revealed that 48% of adults in the UK have never had an ISA and are missing out on tax-free savings. What's more, of those who don't have an ISA, 30% don't even know what one is.

ISAs allow you to stash away up to £3,600 each tax year. Interest is paid tax-free, so a rate of 6%, for instance, is comparable to 7.5% in a savings account on which you have to pay tax.

For more information about Britannia's new fixed rate ISA, go to one of the Society's 254 branches, visit the website www.britannia.co.uk, or call 0800 013 4860.

For the latest savings best buys - including cash ISAs - click here. 

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