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Have your ISA cake and eat it….

Have your ISA cake and eat it….

Category: Savings

Updated: 29/03/2011
First Published: 28/03/2011

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 It is now over 6 months old so the content may be out of date.

Some ISA savers rate safety as more important than rates when choosing an isa, but the truth is they can have both.

ISA savers over 45 identify safety as the most important factor when deciding which provider to use, research by the Financial Services Compensation Scheme (FSCS) has found.

The safety of savings was found to come before products with 'the best possible deal' or those 'offered by a well-known and reputable brand'.

However, savers can have their ISA cake and eat it as the high street's best rate ISAs are covered by the FSCS, meaning consumers would receive all of their money back were the worst to occur.

All of the following cash ISAs are fully covered by the compensation scheme and offer eye-catching rates of interest.

If savers have not yet used their full £5,100 allowance for the 2010/11 tax year, then they have until 5 April to do so. They will then be able to top up their ISA with their 2011/12 allowance from the 6 April, when the new tax year begins.

Mark Neale, chief executive of the FSCS, said that given the events of the last few years, it is not surprising that the safety of deposits is uppermost in savers' minds.

"Even those who are driven by rates should still check that their institution is covered by the FSCS so their money is safe up to £85,000 for cash ISAs and £50,000 for an investment ISA," he added.

The FSCS protects insurance, investments and deposits, including cash ISAs.

Since 2001 it has paid more than £24 billion when financial services firms, such as Icesave, have gone bust and left people out of pocket.

Check out our latest ' All you need to know' ISA Fact Sheet

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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 Any products featured may be withdrawn by their provider or changed at any time.