A major UK bank has delivered a welcome boost for its customers to round off the week.

First direct announced it had raised the rate on its fixed rate ISA to 4.40% AER this week, in a move designed to “help customers make the most of their tax-free cash savings this ISA season”. Should customers deposit the full £20,000 annual ISA allowance, they will pocket £880 in interest after 12 months, first direct confirmed.

Customers also have the flexibility to transfer previous ISA balances into the account. Interest is calculated daily and credited at the end of the fixed term, the bank added.

There is an additional incentive on the table, too.

To qualify for the account, customers must open a first direct 1st Account. Those who do so stand to pocket an extra £200, provided they open the account before July 15, as part of first direct’s enhanced switching incentive.

New customers transferring their current account to first direct can also look forward to a host of attractive perks, including a range of discounts and benefits, access to a 7% interest Regular Saver account, fee-free overseas transactions and ATM withdrawals, a £250 interest-free overdraft and round-the-clock customer service.

Colin Harrison, head of banking and propositions at first direct, said: “We are committed to supporting our customers save for their future, including when it comes to tax-free savings. On top of getting a competitive return of 4.40% on their ISA, customers can also access our 7% Regular Saver Account, which can help maximise interest returns even further.

“This is on top of all the perks we offer on our current account, including the award-winning customer service that first direct is famous for, which is available 24 hours a day, 365 days a year.”