Product focus: Cash ISAs with bonuses - Savings - News - Moneyfacts

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Product focus: Cash ISAs with bonuses

Product focus: Cash ISAs with bonuses

Category: Savings

Updated: 28/06/2010
First Published: 28/06/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Introductory bonuses are often used by providers to boost their product's initial rate.

It is important to remember, however, that the bonus accounts for a large percentage of the overall rate and only runs for a limited period, usually twelve months.

To avoid disappointment, savers may want to make a note of when their bonus expires and leave plenty of time to discuss their future savings options with their provider.

Here is a selection of the current best five Cash ISAs which all include an introductory bonus and accept transfers in.

Newcastle Building Society – Reward Saver ISA

The Reward Saver ISA pays 2.75% on its anniversary including a bonus of 1.00% for twelve months. Savers can invest a minimum of £500. Transfers in are allowed. Advance notice of 120 days is required to access funds, although early access is allowed subject to 120 days notice. Investors can split their Cash ISA savings across multiple ISAs within Newcastle Building Society's range. The account is available to savers aged 18 and over and can be operated in branch, by post or telephone.

Birmingham Midshires – ISA Extra

This account pays 2.70% on its anniversary including a 1.00% bonus for fifteen months. A monthly interest option is also available at 2.67% including a bonus of 0.98% for fifteen months. Interest is paid after one year, then again when the fifteen month bonus expires and annually thereafter. Savers can invest a minimum of £500. Transfers in are allowed. No notice is required to access funds, although all withdrawals must be made by cheque. The account is available to savers aged 16 and over and can be operated by post only.

Cheltenham & Gloucester – C&G Cash ISA

Cheltenham & Gloucester's Cash ISA pays 2.70% on its anniversary including a 1.70% bonus for twelve months. A monthly interest option is also available at 2.67% including a bonus of 1.68% for twelve months. Minimum investment is just £1. Transfers in are allowed. Funds can be accessed immediately. All postal withdrawals must be made by cheque. The account can be operated by savers aged 16 and over in branch or by post.

Marks & Spencer Money – Flexi Cash ISA

The Flexi Cash ISA pays 2.65% including a 1.25% bonus for eighteen months. A minimum investment of £100 is required, although those paying by monthly direct debit must invest a minimum of £25. Transfers in are allowed. Savers can split their full ISA allowance between the Marks & Spencer Money Fixed Rate Options and the variable Cash ISA. No advance notice is required to access funds. Transfers in are allowed. The account is available to savers aged 16 and over and can be operated by telephone and post.

Bank of Scotland – Halifax ISA Direct Reward

This account pays an annual rate of 2.60% including a bonus of 2.10% variable for twelve months. Savers can invest a minimum of £1,000. If the balance drops below £1,000 the rate will revert to that of the ISA Saver Direct, currently at 0.50%, and terms after twelve months. Funds can be accessed immediately, although only four withdrawals are permitted in the first twelve months. On the fifth withdrawal, the ISA Saver Direct rate will apply. Transfers in are allowed. The account is available to savers aged 16 and over and can be operated online or by telephone.

Find the best savings account for you - 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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