Britannia has launched a new individual savings account (ISA) with a one-year fixed interest rate.

The building society announced that the product is available from today and requires a minimum investment of £3,600.

Research commissioned by Britannia last year found that nearly half of the UK's adults have never had an ISA. Managing director Tim Franklin said the new product helps consumers benefit from tax-free savings.

He added: "The great rate means that savers are getting a good return on their investment, plus the peace of mind that their money is in safe hands with Britain's second largest building society."

Available to new and existing customers, the product currently has in interest rate of 6.3 per cent.

This month Nationwide announced that it would no longer be accepting transfers of ISAs from other providers, calling for reforms to the system, which it claimed is "outdated".

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