A five-year fixed rate Isa has been launched by Leeds Building Society, paying 4.60 per cent tax-free.

As part of the deal, holders of this type of Isa will have unlimited access to 25 per cent of the amount invested at any time, without facing a penalty.

The minimum opening balance for the Isa is £1.

Existing Isa holders will be able to transfer their other Isa subscriptions from previous years. According to the building society, this amount could total £43,200 plus any interest accrued.

Leeds Building Society sales and marketing director Kim Rebecchi commented: "We have seen very high Isa inflows this tax year and are very aware that tax-free savings are extremely important to our customers.

"There is no doubt that investors should review their existing savings and consider transferring their Isas, to ensure they are maximising their tax free return."

A recent survey has shown that many people over the age of 50 do not know what the annual Isa limit is.