From finding the best ISA rates to running a cash ISA comparison to find the best ISA deal
What are the best cash ISA interest rates available?
The best cash ISA rates for you will depend on many factors, including what type of access to your money you want to have.
There are three main types of cash ISA:
- Instant, or easy access cash ISAs, which allow you to withdraw money from your account at any time without charge
- Notice cash ISA, which require notice – usually between 30 and 120 days – before you can access your money
- Fixed-rate cash ISAs, which tie up your savings between one and five years, providing a set interest rate for that time
How can I make sure I’m getting the best cash ISA interest rates?
There tends to be a wide gap between the best ISA deals and the worst, so be sure to compare the different accounts available and make the most of your tax-free savings by finding a high interest cash ISA.
Once you have opened an ISA, check rates regularly to make sure you are still earning a high interest rate – many ISA rates drop sharply after 12 months.
You can switch from one provider to another to get the best cash ISA rate, but always have your old and new providers organise the switch – you could lose your tax-free interest otherwise.
How much can I invest in a stocks and shares ISA?
You can invest up to £11,880 in the 2014/15 tax year in a stocks and shares ISA – you can only invest with one provider in a single tax year.
Investing this amount would use up your full ISA allowance – if you’d rather split your allowance between a cash ISA and a stocks and shares ISA, you can choose to invest up to 50% of your total ISA allowance (£5,940) in a cash ISA.
You can of course invest less than £5,940 in a cash ISA, with the remaining balance invested in stocks and shares.
From 1 July 2014, the total ISA allowance will increase to £15,000 and that can be used as either a cash ISA or stocks and shares, or a combination of the two.