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5 Factors to Consider When Choosing a Cash ISA

Selected ISAs

Stocks & Shares ISA

from Prudential

Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Four unique PruFunds
  • Invest From: £50 p.m. or £500 lump sum
  • Investment Options: Lump sums, regular savings and ISA transfers

Why we like it: Choose from 4 unique PruFund Funds, each one with a different level of risk and managed by Prudential’s in-house experts, and you can keep track of your investments 24/7 using their online valuation service. Open with as little as £50 per month or a one off lump sum of £500. The application process takes around 10 minutes and they also have a simple transfer process if you already have ISAs that you wish to move across. Other benefits include one simple annual management charge and no exit fee.

Fully Managed Stocks and Shares ISA

from Nutmeg

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Fully Managed Portfolios
  • Invest From: Min. £500 single (+ £100 pm for ISAs below £5,000)

Why we like it: Get an intelligent stocks & shares ISA portfolio - Choose a portfolio that’s fully managed by our expert team, or one designed to remain steady and rebalance automatically. No tie-ins, no set-up fees, no exit charges. Easy, online set up in minutes. Start with as little as £500 (plus £100 per month for ISAs below £5,000). Simple fee structures – 0.25% to 0.75% depending on how much you invest, incl VAT. Plus, live chat, amazing customer support and brilliant investor tools and guides. Regulated by the FCA and protected by the FSCS. Capital at risk.

Investment Income Plan ISAs

FTSE 100 Enhanced Income Plan

from Investec

Allow ISA Transfers
Annual Income 4.56% fixed income
  • Counterparty: Investec Bank plc
  • Term: 5 years

Why we like it: Fixed income, fixed term, monthly payments and your capital back unless the FTSE falls by more than 50%. By offering a high fixed income rather than a variable income based on the performance of the stock market, this plans offers something different to income seekers.

  • 4.56% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies for this plan
  • Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Peer to Peer Lending ISAs

CROWD2FUND ISA

from CROWD2FUND

Allows ISA Transfers
Interest Rate Earn an estimated 8.70% APR
  • Term: 1-5 years
  • Protection Scheme: Own Scheme
  • Invest From: £10
  • Currently 0% platform default rate
  • Access to your capital
  • Balance your level of risk
  • Capital at risk
Easy Access Cash ISAs

30 Day Notice Cash ISAs

from Aldermore

Interest Rate (AER) 0.80%
  • Term: Easy Access

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • Early withdrawals are permitted subject to loss of interest equivalent to the notice period
  • Open account with £1000

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)
Fixed Rate Cash ISAs

3 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.25%
  • Term: 3 Years

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • 1.85% gross/AER fixed for 3 years.
  • £1,000 minimum opening balance

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

3 Year Fixed Rate Cash ISA

from Bank of Cyprus

Interest Rate (AER) 1.28%
  • Term: 3 Years


  • Minimum deposit £500
  • Available to individual applicants aged 16 or over
  • Access to funds before the end of the term is subject to a fee equivalent to six months’ interest

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

2 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.20%
  • Term: 2 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

2 Year Fixed Rate Cash ISA

from Bank of Cyprus

Interest Rate (AER) 1.23%
  • Term: 2 Years


  • Minimum deposit £500
  • Available to individual applicants aged 16 or over
  • Access to funds before the end of the term is subject to a fee equivalent to six months’ interest

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

1 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.00%
  • Term: 1 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

1 Year Fixed Rate Cash ISA

from Bank of Cyprus

Interest Rate (AER) 1.13%
  • Term: 1 Year


  • Minimum deposit £500
  • Available to individual applicants aged 16 or over
  • Access to funds before the end of the term is subject to a fee equivalent to six months’ interest

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

5 Factors to Consider When Choosing a Cash ISA

A cash ISA is a first port of call for anyone who wants to save money without handing over a large portion of their interest earnings to the taxman. A cash ISA is a straightforward way to 'wrap up' a portion of your savings, so it's definitely worth considering by all who are eligible for this tax-free allowance.

However, choosing an account that best meets your needs is easier said than done. Choosing a cash ISA is much easier once you've zeroed in on the specific factors that are most important to you. With this information in hand, you will be better prepared to find the cash ISA that best fits your financial goals. To help you along in the ISA selection process, we've narrowed it down to five essential factors to keep in mind as you compare cash ISA possibilities:

1. Cash ISA rate

Your rate determines how much you earn on your account. However, the best rate available this tax year may no longer be competitive in the next, so it's vital to continue to shop around the cash ISA providers in order to ensure your account is earning as much as possible. Fortunately, cash ISA transfers can be usually be done at any time without incurring a penalty, as long as your ISA manager allows withdrawals as part of your account terms.

2. Account Flexibility

There are many different types of cash ISAs available, including:

  • Instant access accounts - these offer immediate access to your cash
  • Easy access accounts - these allow some options for early withdrawal
  • Fixed-rate accounts - these operate on the understanding that savers will tie up their money in the ISA for a fixed period

Each of these account types are likely to differ in terms of when and how much you can withdraw, as well as in terms of how the rate of interest is determined. Whichever type of cash ISA you choose, it's a good idea to look for an account with the most flexible terms possible. This will allow you to switch providers, if necessary, in order to get the best rates.

3. Liquidity

Some types of cash ISAs do not allow withdrawals during a set period - for example, many fixed-rate cash ISAs require savers to commit to a minimum term. If you withdraw money before this period is over, you will be penalised for your withdrawal. While these types of cash ISAs typically offer a higher rate of interest, you won't be able to benefit from this attractive rate if you're likely to require to access to your cash before the term is over. If you need to have your money readily available, the relative liquidity of the different cash ISAs is likely to be a major factor in your decision-making process when choosing an account provider.

4. Account bonuses

Some cash ISA providers offer bonus rates for a limited time to lure in new customers. These bonuses have the potential to be quite beneficial, particularly if the rate lasts for six months or more. However, ISA managers hedge these attractive rates on the fact that customers often neglect to transfer their funds to another provider when the bonus rate falls. This drop can be steep - sometimes falling to half of the original rate offered - so if you opt for a cash ISA that offers a bonus rate, be prepared to shop around again once the honeymoon period is over.

5. ISA Managers

The process of finding an ISA manager can sometimes be as easy as heading to your current bank or building society. However, it pays to research your options before you commit to anything. When choosing an ISA manager, make sure you look for one that has been approved by HM Revenue and Customs. It is also important to look into the ISA manager's performance, as this increases the likelihood that you'll receive satisfactory service and a decent rate of return on your money.

Cash ISAs

ISAs are a tax-advantageous way to save or invest, check out some of the ISA options below

ISAs Products

Fund ISAs

There are a range of types of fund ISA

Fund ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

What is the best investment ISA?

20th June 2017

People often ask: “what is the best investment ISA?” The answer to this question is not a simple one, with the best investment ISA for you depending on a number of factors. 

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