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Product focus: ISAs

Product focus: ISAs

Category: Savings

Updated: 14/06/2010
First Published: 14/06/2010

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 It is now over 6 months old so the content may be out of date.

A recent report from the Centre for Policy Studies, has claimed that the UK's current savings system is too complicated and is in need of a reform.

One of the think-tank's proposals is to combine the pension and ISA regimes with an overall contribution limit of £45,000. While it remains unclear as to whether the proposals will go ahead or not, savers looking for a tax free investment have plenty of products to choose from.

Like many savings accounts, cash ISAs can sometimes require advance notice to access funds.

Here is a run-down of the current top three, all of which 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 12 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.

Aldermore – 30 Day Notice Cash ISA Issue 2

This account pays 2.65% on its anniversary. A monthly interest option is also available at 2.62%. Savers can invest a minimum of £1,000. As the name suggests, 30 days notice required to access funds. Early access is allowed, subject to 30 days loss of interest. All withdrawals must be made via a nominated account and cash withdrawals are not allowed. Transfers in are allowed. Savers must be aged 18 and over to hold the account, which can be operated by post, telephone or online.

Nationwide Building Society – Champion ISA

The Champion ISA pays 2.60% on its anniversary including a bonus of 1.35% until 30th June 2011. The underlying gross rate is guaranteed to be the average of the top five branch based cash ISAs from a selection of key competitors as selected by Moneyfacts each week. Savers can invest a minimum of £1,000. If the balance drops below £1,000 the rate will revert to 0.10% and no bonus will apply. Transfers in are allowed. One penalty and notice free withdrawal is allowed each tax year, after which 60 days notice is required. Early access is allowed, subject to 60 days loss of interest. The account is available to savers aged 16 and over and can be operated in branch and online, although applications for the account can only be made in branch.

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.