When you think about cash ISAs, do you just think about an ISA that allows easy access to your money? But a lot of the very top-paying easy access cash ISAs don't allow you to transfer your money in from previous years.
The best 1 year fixed rate ISAs don't pay interest rates much different to the best easy access cash ISAs (0.30% difference between the top rates - as at 11.11.11). However, on the whole they will allow you to transfer ISA money into them.
This means you can get a top rate on you entire ISA pot, not just this year's allowance of £5,340.
Fixed Rate E-ISA Issue 25
Fixed until 24.11.12
Minimum investment £500
ISA transfers in allowed
Early access or ISA transfer out on 60 days' loss of interest
1 Year Fixed Rate ISA Issue 27
Fixed until 30.11.12
Minimum investment £1
No ISA transfers in allowed
Early access or ISA transfer out on 90 days' loss of interest (if withdrawal greater than 25% of investment)
1 Year Fixed Rate Cash ISA (2)
Fixed for 1 year
ISA transfer out on 180 days' loss of interest
The downside is that your money can't be accessed without considerable loss of interest. So if you need earlier access, a 1 year fixed rate ISA may not be for you.
Easy access cash ISAs allow you to earn a good rate of interest, but may not allow you to transfer ISA money you already have into it.
The best easy access cash ISA that allows ISA transfers in, is the Newcastle BS Bonus ISA (Issue 2) which pays 3.05% AER.
Newcastle Bonus ISA (Issue 2)
Rate includes 0.95% bonus for 12 months
Earlier access or ISA transfer out allowed penalty-free
Can only be operated in branch
Internet Access ISA (Issue 2)
Rate includes 1.35% bonus for 12 months
Earlier access or ISA transfer out allowed penalty -free
Can only be operated online
Rate includes 1.96% bonus for 12 months
Earlier access or ISA transfer out allowed penalty- free
Correct as at 11.11.11.
Whether you go for a 1 year fixed rate, or an easy access cash ISA, there's one thing they all have in common: they probably won't be as competitive in a year's time.
One year fixed rate ISAs, are, obviously, only for a year, so you will need to review your arrangements to get on another good deal.
The best easy access ISA rates will be heavily reliant on an introductory bonus. These usually drop off after the first year, so be ready to shop around and transfer your cash ISA again to continue getting the best return.
You can only open 1 cash ISA per tax year (6 April to the following 5 April), so you need to choose carefully. If you have a cash ISA pot to transfer, a 1 year fixed rate ISA might be the way to go. However, if you want easy access to this money, the best on offer is the Newcastle BS Bonus ISA (Issue 2) - although make sure you have a branch locally.
Find the best ISAs
Fixed Rate ISAs
1 Year Fixed Rate ISAs
2 Year Fixed Rate ISAs
3 Year & Over Fixed Rate ISAs
Easy Access Cash ISAs - Variable
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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