Spotlight: Aldermore Bank's two-year fixed rate cash ISA

The tax-year doesn't end until 5 April but the ISA season seems to have started early . There have been a number of new cash ISAs launched over the past few weeks including a new range of fixed rate deals from Aldermore Bank.

Aldermore's two-year Fixed Rate Cash ISA is paying a market-leading rate of 3.6 per cent.

Interest on cash ISAs is tax-free, making them a valuable tax break. The annual cash ISA allowance for the under 50s is £3,600 – the minimum investment in the Aldermore account. Anyone over 50, or who will be 50 on or before April 5, benefits from a higher allowance of £5,100. This will be extended to all savers from 6 April.

The Aldermore account also accepts transfers. So if you have cash ISA savings from previous tax years languishing in an uncompetitive account, you can transfer it without losing the tax break.

Aldermore's ISA won't suit everyone. If you make a withdrawal during the term you'll be penalised with 180 days' loss of interest. It is therefore only worth considering if you you can afford to lock away savings for two years.