Cash ISAs


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All You Need To Know About Cash ISAs

Low interest rates are a double-edged sword. On one hand, there’s rarely been a better time to take out a personal loan or go for a remortgage (even many credit cards are more tempting), but on the other hand it’s becoming harder to make your money work for you if you’ve got a current account or a savings account. So is a cash ISA a better option? Many people use them to put money by for a house deposit or a new car, but do they always give a better return on your investment? Our straightforward guide will help you decide if an ISA is right for you. 

Let’s compare cash ISAs

If you’re in the habit of stashing your cash under the mattress so that the taxman can’t get to it – stop. Invest in a cash ISA (individual savings account) instead; you’ll earn interest on your savings and it’ll be a lot more comfortable than sleeping on a lumpy bed.

 

Cash ISAs are essentially tax free savings accounts. Everyone has a personal allowance that they can invest in an ISA, and for the tax year 2017/2018 it’s £20,000; the interest you get will depend on the ISA you choose.

 

You may be able to open one with just £1 – others might want larger deposits and some, like Help to Buy ISAs, have set eligibility criteria (but you do get government contributions to help you buy a home).

 

To find the ISA rates to suit you, you need to compare cash ISAs – and where better to start than right here, right now – let’s compare

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Frequently thought questions

We do appreciate that questions about comparing cash ISA accounts are a little too boring to be asked, but they can be thought.


So we’ve compiled the following simple answers to questions frequently thought, about finding the best cash ISA accounts when comparing.

Why compare cash ISAs with comparethemarket.com?

Opening a cash ISA could be one of the best ways to start building up tax-free savings. We can help you compare cash ISAs based on interest rate. We’ll also show you ISAs by provider, access features and minimum/maximum account balances.

 

We’ll give you all your options at a glance in a simple, clear table for easy comparison and highlight the key features of each ISA available.

What do you need to compare cash ISAs?

A lot of cash ISAs are available to apply for online (we will show you how to apply for each, whether it’s online, by phone, post or if you have to go into a branch).

 

You don’t need anything to compare ISAs. But you will need some basic personal details to apply, such as your national insurance number, address, occupation and any current ISA account details you might want to switch into the new ISA to hand.

 

Remember that some cash ISAs will have age restrictions and others require a deposit to open.

What are the benefits of a cash ISA?

An ISA, or ‘Individual Savings Account’ allows you to save money without paying  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.

 

However, 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.

 

You can save up to £20,000 tax-free in your cash ISA in 2017/18, and you won't have to pay any tax on the interest you receive.

How can I switch ISA provider?

If you already have an ISA and want to switch to a different bank or building society that offers a more competitive rate, simply tell your new bank that you’d like to move to them and they’ll organise the transfer for you.

 

Never close your ISA, withdraw your cash, and open up a new ISA. This would count as a new subscription and would mean that some or all of your annual ISA allowance is wasted.