A solenoid is provided which, in the preferred embodiment, has a housing having an axial opening in it. The housing has a divider mounted in the axial opening to separate the axial opening into a first segment and a second segment. Respective ones of a first pole piece and a second pole piece are located on opposite sides of the divider. The first pole piece is moveable with the first segment between an extended position and a retracted position, the first pole piece having a plunger positioned at an end of the first pole piece. A permanent magnet is moveably mounted from the axial opening and is moveable independently of the second pole piece between at least a first position adjacent to the divider, and a second position adjacent the second pole piece. The construction provides a fast acting, low cost latching solenoid construction.