Compare Cash ISAs
When it comes to cash Individual Savings Accounts, there are many account options from which you can choose. These options are based on how much you are looking to save, interest rates, duration and flexibility of the account. The options available to you each have their advantages and disadvantages and should be thoroughly evaluated before a decision is made on signing up to a particular product. The following highlights how these account types compare to each other and the benefits of each over the others.
Easy access cash ISA
The easy access ISA is one of the most basic ISAs available. The account gives a lot of room to an individual for investment freedom. The account allows for withdrawals from the account based on the bank's margin on interest. Unless otherwise stated by the bank, there are no limits to the times a deposit or withdrawal can be made. Some accounts may stipulate a notice period which is usually no more than 30 days. Generally there will be no withdrawal penalties except, in the event where the bank has a limit and stipulates otherwise. Payments to the account are also made at any time without interval or amount restrictions. The interest rates on this account are mostly variable meaning that the bank interest rate policy plays as important a role as the investor, when it comes to this account.
Flexible cash ISA
This account was just recently introduced and it is a modification of the easy access cash ISA. In this account, the individual gets to withdraw money without any bank limits. There are no penalties on withdrawal since there are no limits on withdrawal. Deposits are then made by an individual to cover the amount that has been withdrawn. Again, there are no intervals or regular amounts set in place for payment. The interest rates are also variable and set by the bank or credit institution.
Regular savings cash ISA
This account has a lot more restrictions set in place concerning deposits and withdrawals. Depending on the bank or credit institution, the deposits are pre-determined and there is a regular interval for payment, usually a month. The individual therefore lacks the freedom to deposit more than is stipulated each month. This is usually because the payments are calculated so that they total up to the tax year allowance limit at the end of the year. The interest rate is fixed and compounded to an annual term. There is a hold on withdrawal until such a time that the account matures. Any withdrawals before then are liable to penalty. The interest rate is however higher than those in the easy access and flexible accounts.
Fixed rate cash ISA
This account has even more restrictions to it. The deposit is generally made at application with no further deposits although some accounts may allow a set number of deposits through the term. This makes the account favourable to individuals who do not require access to the money for the set duration. There are normally no withdrawals allowed until the end of the set term. The interest rate is fixed and it is generously higher than more flexible cash isa accounts.
