With the ISA season so far being lacklustre, savers everywhere are looking for ways to maximise their money. There's still time to make the most of your tax-free allowance and it's a great time to prepare for the new tax year as well, and although fixed rate bonds tend to be highlighted for producing the best returns they're not ideal for those that want access to their money. Well, what about variable rates?
A variable rate cash ISA will usually offer a lot more flexibility than its fixed rate counterpart, and it can still generate a decent return – if you know where to look. With that in mind, we've put together the top five variable rate ISAs to help you get the most from your hard-earned savings.
Hanley Economic BS Cash ISA – 60 Day Notice
"Easily taking the top spot in the variable sector is Hanley Economic, with its 60 day notice account paying a market-leading 1.85% on a minimum investment of £100.
"Savers can benefit from the flexibility of further additions and transfers in of previous ISA savings, as well as early access to funds, with transfers out and withdrawals both permitted subject to 60 days' notice or loss of interest."
Islamic Bank of Britain Sharia'a compliant Notice Cash ISA
"Second place goes to this deal from Islamic Bank of Britain, paying an indicative profit rate of 1.81% AER on a minimum investment of £250.
"The flexibility of being able to make further additions adds to the appeal, as does the option of withdrawals and transfers out, as long as you're willing to give 120 days' notice – customers that can't wait that long will lose out on the same amount of interest."
Earl Shilton 90 Day Cash ISA
Penny says… "Making the top three is this deal from Earl Shilton, paying 1.80% yearly on a minimum investment of just £10. Transfers in are not accepted so the maximum amount that can be deposited in the current tax year is £5,760.
"A benefit of this account is the level of flexibility, with further additions, withdrawals and transfers all being allowed, but to access your cash you'll need to give 90 days' notice or lose the same amount of interest."
Principality BS Principality Promise ISA Issue 4
Penny says… "Next up is this deal from Principality BS, again an account that pays 1.80% yearly, which just missed out on third place because of its higher deposit requirement.
"This product welcomes further additions and transfers in while transfers out and withdrawals require 30 days' notice or loss of interest. Savers should also note that only two withdrawals are allowed per year – any more will result in a lower rate being paid."
Stafford Railway BS Cash ISA
Penny says… "Just making the top five is Stafford Railway BS's cash ISA, paying 1.75% yearly on a minimum investment of just £1 for those in the local area. A definite plus of the account is that higher rates of interest will be paid on higher balances, rising to 2.50% if you manage to build up £40,000 or more.
"Adding to the appeal is the flexibility. This instant access account allows withdrawals and transfers out at any time, without any notice required or loss of interest penalty. Further additions are welcome too, although it isn't possible to transfer in the current year's ISA subscriptions."
Information & Rates correct as at: 12.03.2014
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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