Spotlight On: Leeds BS fixed rate ISA

The deal

Leeds building society has helped to kick off the 2012 ISA season by offering fixed rate cash accounts over one, two or three years.

Good points?

Rates are 2.25 per cent over one year, 3 per cent over two, and 3.05 per cent over three years and there are no penalties for early withdrawals.

Bad points?

There will be many other cash ISAs launched in the run-up to the end of the current tax year and there could be better deals offered. You have until the beginning of April to use your £5,340 cash ISA allowance for 2011-12, so there's no immediate rush.

Conclusion

Wasting your ISA allowance is foolish as savings are tax-free. Also bear in mind that rates should be compared to the net rates paid on normal savings accounts.