Vernon Building Society is promoting a rollover Isa option to its Tessa investors. Vernon Building ...
Vernon Building Society is promoting a rollover Isa option to its Tessa investors.
Vernon Building Society is promoting its cash Tessa Isa by offering a tiered rate of interest, which currently rises to 6.45%. Accounts can be opened with a minimum of £10 and interest is calculated daily. Withdrawals can be made at any time subject to a £10 minimum.
Those with maturing Tessa accounts are being encouraged to take advantage of the six-month window, which will allow up to £9,000 to be transferred directly from a Tessa into an Isa.
Typically the investment cap on an Isa is £7,000 but money invested from a maturing Tessa account is counted as a Tessa capital transfer and has a higher ceiling for one-time only investments. Funds transferred six months after the Tessa matures are regarded as a fresh injection of Isa money and will be subject to normal Isa rules, according to Mike Hanson, chief executive at Vernon Building Society.
He said: "To benefit from the scheme, investors need a copy of their Tessa maturity certificate from the provider. Their chosen Isa provider will then liaise to arrange the transfer of funds, which can normally be completed in a matter if days."
Moves to overweight equities and fixed income
The Big Interview: Focus on ethical investment
View from the front row
'No control or oversight'
359 new customers in 2018