The following table represents a selection of the best Cash ISA rates currently available.
But first, a quick Summary of Cash ISA Rules
The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.
The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2008-09.
You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).
You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.
Most providers allow for transfers in. And ALL should allow you to transfer out.
Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.
To maximize your tax free interest, it is best to open your account at the start of the tax year.
The following are a selection of the Current Best Cash ISA accounts (includes rate changes due within 2 weeks)
Financial Institution
Interest Rate
Fixed Period
Minimum £
Comments
BMW
6.54%
1 Year
£100
Yes this ISA is run by BMW the motor company
Ruffler Bank
6.40%
Instant
£15,000
Would need to transfer a cash Isa to meet opening requirements of £15k
Nat Savings
6.30%
Instant
£1,000
Tracks the base rate +0.55% until April 2008
Kent Reliance
6.21%
Instant
£1
Tracks the BOE base rate
Nationwide
6.15%
1 years
£1
Longer fixes at same rate available
Halifax
6.10%
3 years
£3,000
Scarborough
6.10%
30day
£1,000
Northern Rock
6.01%
1 year
£500
Abbey
6.00%
Instant
£1
6.25% above £9000
Northern Rock
6.01%
1 year
£500
ING Direct
6.00%
Instant
£1
Includes 1.4% bonus, - rate shown is 12 month return
Derbyshire
6.00%
2 years
£1,000
Have not announced a change in rates since May.
Out of the above accounts the two instant access trackers by Kent Reliance and National Savings stand out, especially as expectations are for further rate rises.
The BMW 1 year fix is also worth looking into as the highest payer.
By Shahla Walayat
http://www.moneyforums.co.uk
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