Best Cash ISA Interest Rates
When trying to find the right Cash ISA for you, shopping around thoroughly to try and find the best cash ISA rates available may help you make your decision, you can use this website to compare a selection of ISAs from different providers.
Choosing an ISA
You can only open up to one, cash ISA in each tax year, although it may be possible to transfer accounts.
It is therefore important to try and find the Cash ISA product that best suits the way you wish to save, you may therefore want to considering things such as the minimum required opening balance for different accounts and whether you feel an instant access or fixed-rate ISA would be better for you.
- Instant Access Cash ISAs: Usually allow unlimited, free withdrawals from the account and deposits up to your maximum ISA allowance. This means savers can access their money relatively easy should they decide to use it for other things over the terms of the ISA. These types of account usually offer a variable rate of interest.
- Fixed Rate Cash ISAs: Typically require a saver to lock their money into the account for a predefined period of time. During this period of time savers have very restricted access to the money within the account, some accounts may allow early withdrawals however these types of account tend to impose a penalty, based up a set number of days worth of interest for doing so. In return for locking their cash into the account savers receive a fixed rate of interest, meaning it’s possible to calculate exactly how much they stand earn in interest from the ISA over its course. Fixed-rate ISAs tend be offered on a term of: 1, 2, 3 or 5 years.
In order to be eligible for a Cash ISA you must be:
- Aged at least 16 years old
- A resident of the UK, if you do not live in the UK then you must be either a Crown Servant or the spouse/civil partner of one.
You can transfer an ISA at any time, and it is possible to transfer between different types of ISA such as from an Investment ISA to a Cash ISA or vice versa. While all providers are required to allow account holders to transfer out, they can place some restrictions on doing so or impose a penalty of a set amount of times worth of interest for doing so.
ISA providers also do not have to allow transfers-in from other accounts, meaning that if you have been thinking of transferring you should first check that the ISA you wish to move to accepts transfers in.
ISA transfers should take no longer than 15 working days for a Cash ISA and 30 working days for a Stocks and Shares ISA.