Spotlight on: Newcastle 50:50 ISA

The deal

The Newcastle building society has launched an ISA that is half fixed rate, half easy access.

Good points

The account pays a fixed rate of 4 per cent a year for five years on half the initial amount invested. The rest – which can be withdrawn at any time – pays 2.25 per cent. You can put up to £5,640 in a tax-free ISA during the current 2012-23 tax year.

Bad points

There are better rates to be found elsewhere. You can get up to 3.5 per cent on instance-access ISAs from the AA or Cheshire building society, while the Halifax pays 4.5 per cent on a five-year fixed ISA.

Conclusion

This account looks confusing. If you are happy to fix your rate, put your savings in the best available deal. If you may need instant access find the best rate you can. This offers neither.