This “great rate” is available on savings up to £250,000 and would mean an attractive return of £5,875. The minimum investment is £1,000.
Teachers Building Society (TBS) is increasing the rate on its two year fixed rate cash ISA with effect from July 6, 2022.
The two year fixed rate ISA now offers a rate of 2.35 percent interest and is available to everyone, not just teachers, who are looking to benefit from tax free savings.
TBS was founded in the 1960s and helps teachers get onto the property ladder.
It does this by using collective savings balances to balance the funding of low deposit mortgages for teachers so they can buy a home.
The Bank of England Monetary Policy Committee voted to increase the Bank of England base rate from one to 1.25 percent in June.
Following the interest rate rise, this ISA is one of the top rates currently available on the market.
In addition, it offers savers the knowledge that their money is being put to good use.
Mr Leek added: “By opening an ISA with us savers are not just getting a great rate, they’re getting an account with a bonus social purpose, doubling the feel good factor.”
She said: “It’s fantastic to see rate competition within the ISA market for savers looking to utilise their tax-free allowance and this new deal from Teachers Building Society is incredibly attractive.
Ms Springall added: The savings market is improving so we could see rates increase further in the weeks to come, so this is worth keeping in mind.”
The minimum opening balance for this account is £1,000 with a maximum investment of £250,000.