How to find the best Cash ISA

Cash ISAs are savings accounts where you do not have to pay any tax on the interest. You can put up to £3,600 this tax year (April 6 2008 – April 5 2009) into a Cash ISA and earn tax-free interest on your money. The best Cash ISA for you depends on what type of access you require to your money.

The best Cash ISA rates are paid on accounts you run over the internet but there are good deals through bank and building society branches and ones you run over the telephone.

Easy access ISAs let you take money out of the account whenever you want without charge.

Fixed rate term ISAs tie up your money from anywhere between one and four years, but guarantee a fixed interest rate for that term.

After you’ve decided which type of ISA to go for, make the most of your tax-free savings by finding an account with a high interest rate. There is a wide gap between the best Cash ISAs and the worst.

Once you have opened an ISA, check rates regularly to make sure you are still earning a high interest rate.

You can switch from one provider to another to get the best Cash ISA rate but ask your old and new providers to organise the switch – otherwise you could end up paying tax on your interest.

Compare ISAs now and find the best Cash ISA for you.

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