Best Buy Cash ISAs

Best Buy Cash ISA

Whatever the current best buy cash ISA is, is dependent on changes to rates and other potential variables, therefore before taking out a new Cash ISA it can be a good idea to shop around various different providers to try and find the best product for you.

You can use the tables on this site to compare a selection of ISAs from a variety of different providers and follow the links to find out more.

About cash ISAs

All eligible individuals can open up to one Cash ISA and contribute up to the maximum ISA allowance into it each tax year.

Cash ISAs offer a straight forward way to earn interest on your savings. They work similarly to the standard savings accounts offered by different banks and building societies. The main difference is that all interest earned on money within the account, up to the maximum allowance, is paid tax-free.

Types of Cash ISA

There are varying types of Cash ISA offered by different providers, which type of Cash ISA is best for you will be dependent on how you wish to save:

1. Instant Access Cash ISAs: Instant Access products tend to allow the account holder to make unlimited, free withdrawals and deposits up to their maximum ISA allowance. This type of account tends to offer a variable rate of interest meaning the rate you receive on the account could fluctuate over time.
2. Fixed-term/rate ISAs: Fixed-term or fixed-rate ISAs tend to require savers to lock their money in the account for a predefined period of time usually without being able to make either full or partial withdrawals from the account, some may allow withdrawals but subject penalty usually calculated at a set amount of days worth of interest. In return for locking their cash into the account savers are normally offered a fixed rate of interest, meaning the interest rate will stay the same over the course of the ISA. Fixed-rate ISAs tend to be offered for periods of time from between one to five years, generally speaking the longer the period of the ISA the better the rate of interest offered by the provider.

Transfers

It’s possible to transfer an ISA to another either the same or a different provider. However, while all ISA providers are required to permit account holders to transfer away, they do not have to allow transfers in from other ISAs. ISA providers can also charge an interest penalty for moving away from their account. This means that while moving ISAs can sometimes be beneficial, for reasons such as achieving a better interest, savers should first check that the account they wish to move to accepts transfers in, it is also wise to consider if after factoring in any penalty that might be incurred for transferring away if it would cancel out the potential benefits of a better rate of interest.

It is possible to transfer between different types ISA such as from an Investment ISA into a cash ISA or vice versa.