Best Instant Access ISA
There are number of Instant access ISAs to choose from. You can use the tables on this website to compare a selection of ISAs from different providers and follow the links to get more information and apply.
Instant Access ISAs provide a way for savers to deposit their money in a tax-free wrapper, while still maintaining the flexibility to make withdrawals whenever they need to. It’s also a flexible way to deposit money as they often require a small opening deposit, often just £1, and usually allow you to make deposits whenever you wish to.
Choosing an Instant Access ISA
You can only open up to a maximum of one new Cash ISA in each tax year, it is possible to transfer accounts; however, not all ISAs will accept transfers in. It is therefore wise to shop around to try and find the product that fits best with the way you want to save.
Advantages of an Instant Access ISA
- You can access money instantly without withdrawal penalties with the option of being able to take money out whenever you want
- There is flexibility on how you save whether through a lump sum, by standing order or by making deposits whenever you want
- Minimum deposits from £1 although minimum deposit levels will vary from ISA provider to ISA provider
- For convenience or for finding a better deal, you are able to transfer in other ISAs or transfer to another ISA. This does depend on the provider
- Access the account through a range of methods. Such as online, mobile, in branch or by telephone or a combination of both
How to Choose an Instant Access ISA
There is a wide range of instant access or easy access ISA account deals to choose from, so we have highlighted some of the features to look out for:
1.You must be UK resident of 16 years or over for tax purposes and have a UK national insurance number to qualify for this sort of account
2.To qualify for a cash ISA you can’t have taken out another cash ISA or used your full annual ISA allowance in a stocks and shares ISA and/or an innovative finance ISA during the current tax year
3.The interest rates paid on instant access ISAs tend to be comparatively low compared to fixed-rate ISAs or other types of savings accounts. The trade-off is that you get easy, fast access to your cash whenever you need it. Make sure you shop around to find the instant access ISA with the best current rates, and be prepared to switch providers if rates change
4.Some instant access ISA providers offer incentives to those opening a new account. This may mean that you'll be offered an increased rate of interest for a fixed duration or a bonus if you transfer your old cash ISA balance to the new provider. Savers should bear in mind that the ongoing interest rate may not be competitive, so get ready to switch to a different ISA provider once any incentives or bonuses have been paid.
5.Some instant access cash ISA providers pay interest on a monthly basis, while others do so on a quarterly or annual basis. Make sure you know which calculation method will be used before signing up for an instant access ISA
It is important to remember that if you make a withdrawal from a cash ISA, any money you take out will still count towards that year's cash ISA allowance. You can't replace any of the money you withdraw, so make sure you really need to before doing so.
Also if you wish to transfer, make sure you follow the correct transfer procedure rather than take the cash out yourself and transfer it as you could lose some of your annual allowance.