Spotlight On: Cheshire's fixed rate ISA

The deal

Cheshire building society has launched issue 3 of its Direct Cash ISA with a rate of 4.05 per cent.

Good points

It's a market-leading rate and all returns on a cash ISA are paid free of tax. You can put up to £5,340 into a cash ISA before 6 April. The society has also increased the rate on issue 1 of its Direct Cash ISA to 3.35 per cent.

Bad points

It's an 18-month fixed rate, which means you'll lose out an any great deals in the next ISA season. Also if you need to withdraw cash before the end of the 18 months, you'll be charged 180 days' interest.

Conclusion

The Cheshire is part of Nationwide. By using the Cheshire brand, the Nationwide can jump to the top of the best-buy tables with offering the deal to all its customers. Wait to sign up as there are likely to be better deals in the offing before the end of the current tax year on 5 April.