Speculation has been growing recently of a possible reduction in the annual ISA limit.
It is feared that the limit, currently £10,200 of which £5,100 can be placed into a cash ISA with the remainder in a shares ISA, could be cut as part of the Government's cost-cutting initiative.
Many savers will be anxious to see if their fears are confirmed on October 20 when the Government is due to deliver its spending review. Despite this speculation, a number of providers have launched some decent new cash ISAs over the past few weeks.
Here is a selection of the best cash ISAs launched recently by familiar high street names.
Halifax– Cash ISA Direct Reward
This new account pays an annual rate of 2.80% including a bonus of 2.30% for twelve months. Savers can invest a minimum of just £1. The rate and terms will revert to that of the ISA Saver Direct, currently 0.50%, at the end of the twelve month period or if the balance drops below £1. No advance notice is needed to access funds. Transfers in are accepted. The account is available to savers aged 16 and over and can be operated online or by telephone.
Nationwide Building Society – Champion ISA
Nationwide Building Society increased its Champion ISA rate recently to 2.78% including a 1.35% bonus until 30th June 2011. The underlying gross rate is guaranteed to be the average of the top five branch based cash ISAs sourced by Moneyfacts. Savers can invest a minimum of £1,000. One notice and penalty free withdrawal is allowed each tax year. After this sixty days notice must be given to access funds and earlier access is subject to 60 days loss of interest. Transfers in are accepted. The account can be operated in branch or online by savers aged 16 and over.
Northern Rock – Easy ISA
Northern Rock's Easy ISA pays an annual rate of 2.50%. The gross rate for this deal is guaranteed to be no more than 2.00% below bank base rate. Minimum investment is £1. Funds can be accessed immediately without advance notice or penalty. Transfers in are allowed. The account is available to savers aged 16 and over and can be operated in branch only.
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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 Any products featured may be withdrawn by their provider or changed at any time.
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