Hunting around for a Cash ISA can be a challenge, that’s where our easy to read best buy table can help. You can quickly compare information such as provider, interest rate and access features to find the Cash ISA that’s right for you!
- Instant Access Cash ISAs
- Fixed Rate Cash ISAs
Interest rate (AER)
Min/Max account balance
What is a Cash ISA?
A cash ISA (real name: an Individual Savings Account) is a way to save money without paying income tax on the interest you earn.
Usually, you have to pay income tax on the income you earn from your savings. But if you put your savings into a Cash ISA, you do not have to pay any tax on the interest you earn.
This is because the Cash ISA has a favourable status from the Government. It’s their way of encouraging us all to save.
There is a limit on the amount you can pay into a Cash ISA; this limit rises annually, every tax year, depending on the current rate of inflation. The tax year runs from the 6th April to the 5th of April the following year. You can save up to £5,940 tax-free in your cash ISA until April 2015, and you won't have to pay any tax on the interest you receive.
Moving your Cash ISA
If your interest rate drops, or doesn’t increase at the same rate as other ISAs on the market, you can move your ISA to a different bank or building society that offers a more competitive rate. Just tell your new bank that you’d like to move your ISA to them and they’ll organise the transfer for you.
Under no circumstances should you close your ISA, withdraw your cash and open up a new ISA to put it in. This would be a new subscription and would mean that some or all of your annual ISA allowance would be wasted.
To avoid this, you should leave your ISA alone, and allow your new ISA provider to take care of the transfer of funds.