Best Cash ISA Tax Free Savings Accounts - Updated July 2007
Personal_Finance / ISA's Jul 16, 2007 - 11:18 PM GMTBy: Shahla_Walayat
UK Interest rates were recently increased to 5.75% and now cash ISA providers are starting to reflect the change by raising interest rates on the cash element of individual savings accounts. 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 interest rate rises.
The BMW 1 year fix is also worth looking into as the highest payer.
By Shahla Walayat
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Comments
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Ron
05 Sep 07, 06:21 |
Maxi ISA
While Nat Savings (NS&I) looks good they do not offer MAXI ISA so thir limit is the mini ISA maximum |
