Savers got a boost in the Budget earlier this year, when it was announced that from July, the maximum contribution to a Cash ISA (Individual Savings Account) will rise to £15,000 each and every year.
It will also be possible, again from July, to transfer money from a Stocks and Shares ISA to a Cash ISA.
Both of these moves will give Cash ISAs a new lease of life. But which of the 200 or so Cash ISAs currently available is right for you?
We’re here to help; we’ve looked at the market and have come up with five Cash ISAs we really like at the moment.
Instant access to your cash: Coventry Building Society Branch Instant ISA
This account will be available from 31st May and is currently the ‘best buy’ for instant access Cash ISAs.
The interest rate will be 2.00% gross per annum (2.00% AER) and as the name suggests, you will have instant access to your savings.
The account does have a couple of drawbacks though. Firstly, it won’t accept transfers in from existing ISAs and secondly you have to visit a branch of the Coventry Building Society to open the account. You can find the nearest branch to you by clicking here.
Great for regular savings: Nationwide Building Society Regular Saver ISA
Not everyone can afford to put a lump sum into an ISA and prefer to save on a regular basis.
The Nationwide Regular Saver ISA currently pays 2.59% gross per annum (2.50% AER). It can be started with just £1 per month and with a maximum contribution of £1,250 per month it should suit all budgets.
Savers have instant access to their money and the account is available on-line or through a branch.
Click here for more information.
Transfer an existing ISA and get instant access: First Direct Cash ISA
If the interest rate on your Cash ISA has been cut, or you’ve come to the end of an introductory deal, a transfer to an alternative bank or building society could be the answer.
For those people who have saved diligently and have built up a substantial amount in their Cash ISA, First Direct could be worth a look.
The First Direct Cash ISA pays 2.00% gross per annum (2.00% AER) on balances transferred in of over £40,000.
The account can be opened by post or over the phone and you will have instant access to your cash. Interest is paid monthly too, which will appeal to many savers.
If you don’t have £40,000 in your Cash ISA you can still use First Direct, although the interest rate drops to 1.50% gross per annum for smaller balances.
Click here for more information.
On-line access to a one year fixed rate: Tesco Bank Fixed Rate Cash ISA
If you want a guarantee that the interest rate won’t fall for a year, the Tesco Bank Fixed Rate Cash ISA is worth considering.
It pays 1.65% gross per annum (1.65% AER), needs only a £1 contribution to be opened, is available on-line and will accept transfers in from other Cash ISAs.
If you want to top up your ISA after 1st July, when the contribution limit rises, Tesco will allow you to add to the account between 1st and 31st July and will guarantee you get the same 1.65% rate.
Be careful though, withdrawals are not allowed, so you need to be sure you can afford to tie up your savings for a year.
Click here for more information.
Longer fixed rate: Santander Two Year Fixed Rate ISA
If you want to fix your interest rate for longer, take a look at Santander’s Two Year Fixed Rate ISA.
It pays an interest rate of 2.30% gross per annum (2.30% AER) and is available over the phone or in a branch.
The minimum contribution is £500, which should make it accessible for most savers; it will also accept a transfer in from other Cash ISAs. Again, Santander will allow top-ups at the same 2.30% interest rate, when the ISA allowance rises from 1st July.
There is one small drawback though, to get this ISA you must hold either a 123 Current Account, 123 Credit Card or be a Santander Select customer to open this account. If this puts you off you could always look at the Nationwide Building Society Two Year Fixed Rate ISA, which pays 2.05% gross per annum (2.05%), which is available through branches.
Click here for more information.
Check back often, deals change regularly!
Cash ISA deals change on a regular basis, it’s vital you check back often and to make sure your Cash ISA is paying a competitive rate of interest.
Our Cash ISA best buy tables are free to use and regularly updated, to make sure you have all the information you need to find the right Cash ISA.
