Cash ISAs may be the best option for savers, aged 16 or over, who do not wish to pay tax on their interest. It is worth remembering, however, that some products have introductory bonus rates which last for a limited period only. It is important to keep an eye on when the bonus is due to expire to avoid the interest dropping, often dramatically.
Abbey – Super Direct ISA
Abbey's Super Direct ISA pays a rate of 5.50pc. The rate includes a variable bonus of 4.00pc for 12 months for deposits between £1 and £8,999 and 4.50pc for deposits of £9,000 and more. Funds can be accessed immediately. The rate will revert to the tiered variable rate of the Direct ISA Issue 3 depending on the account balance after 12 months. Investments must remain open for 12 months to obtain the preferential rate. The account can be operated by post, telephone and online, although it must be opened in branch. Savers must be aged 18 and over and open or have an existing qualifying investment account with at least an equal amount.
Newcastle Building Society – Reward Saver ISA
This account pays a rate of 3.00pc including a bonus of 1.00pc for 12 months. A minimum investment of £500 is required and transfers are permitted. Savers must give 120 days' notice to access funds. Early access is allowed, although this is subject to 120 days' loss of interest. Savers can choose to spread their cash ISA savings across multiple ISAs within Newcastle Building Society's range. Savers must be aged 18 and over. The account can be operated in branch, by post or online.
Chesham Building Society – Cash ISA 120 3rd Issue
This recently launched account pays a rate of 3.00pc including a bonus of 0.75pc until 31st December 2010. A minimum investment of £500 is required and transfers are permitted. Advance notice of 120 days must be given to access funds, although early access is allowed subject to 120 days' loss of interest. Savers must be aged 16 and over. The account can be operated in branch or by post.
Compare cash ISAs
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 Any products featured may be withdrawn by their provider or changed at any time.
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