Best Cash ISA
Last Updated on Thursday, 15 July 2010 08:26 Written by admin Monday, 7 June 2010 04:56
We all like to get the best from our money and a good return on savings is a definite requirement. So where will you find the best cash ISA to maximise your money? All ISAs pay interest on the money invested, but the rate of interest can vary considerably. Most ISA interest rates are fixed to the Bank of England base rate and so will change if the base rate changes. In addition the ISA providers can change the rate given, to suit the needs of their company.
So, where to begin? You can save up to £5,100 in a cash ISA during the 2010-2011 financial year. Where will you get the best cash ISA rate for that sum? The first move is to shop around. There is a wealth of information available showing the best cash ISA at any point in the year. Many investors use the internet, where they can browse innumerable websites provided by both ISA providers and independent ISA watchers.
Alternate sources of information are the providers themselves. All banks have booklets about their products, so collect a few from the local branches and see what they offer. National (and local) newspapers often run articles on the best cash ISA available at the moment, which will give comparative information; the Financial Times is a constant source of data.
Secondly, read the details carefully. This may seem self-evident, but there are any number of variations in what is actually being provided. Drawing up a comparative table of providers’ details can be helpful. The best cash ISA for you may not necessarily be the one offering the highest percentage interest.
So what details do you consider?
- The interest rate. (obviously)
- How long does the offered rate last? The rate quoted may be for one year, three years, even five years.
- Is the ISA available for new money or can you transfer ISA money from previous years?
- Is the ISA available to anyone, or do you have to already have an account with the provider.
- How can you set up the ISA?
- What is the minimum deposit sum? It can vary from £1 to the full allowance of £5,100 in one deposit.
A factor to watch is the physical access to your ISA both for the set-up and once it is running. Not all providers allow set up via the internet, for instance. An example: the best cash ISA UK available at the moment is through one of the minor banks, but it can only be opened or any transactions carried out, at a branch of the bank. So, although the current offered rate of 3.9% is probably the best cash ISA rate anywhere, it is not much help to you if there isn’t a branch in your vicinity.
To maximise your savings and get full benefit from the tax-free interest offered, do your homework before committing your money. Then you will find the best cash ISA for you.