New account opened for savers

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New account opened for savers

Savers can open their account with a deposit of just $1 and can save up to £250,000 in the account. A person can make three withdrawals every 12 months from the day the account is opened without any fees. All withdrawals will be charged a charge equivalent to 50 days' interest. The interest can be paid monthly or annually, and can be added to the account itself or paid into another account. Bethaney Cozens, Coventry Building Society's savings product manager, said: ''Four Access ISA'' is currently paying 4.9 percent. The account offers four withdrawals per 12 months from the day the account is opened.

The ISA can be opened with a deposit of 1 pounds, and a person can deposit up to 20,000 pounds a year, according to the ISA allowance. The government is planning to increase the ISA allowance by adding an extra amount for savings invested on the London Stock Exchange. Government officials are also said to be looking at a new type of ISA that would allow cash and stocks and shares to be held in the same account.