Search: The best performing stockmarket ISAs
You can earn top rates of tax-free interest and enjoy easy access to your money with a cash mini Isa.
Here, we look at the basics of cash Isas - how they work, the best accounts to go for, and what questions you must ask when you apply.
The basics
Cash Isas are simply tax-free savings accounts run by banks, building societies and the Government's National Savings scheme.
Providers tend to reserve their top rates for savers in these popular accounts.
How do I know which account suits me?
You can find out which cash Isa best suits your needs with our CAT mark - this means that they meet certain Government criteria and are deemed to be 'fair and reasonable' savings vehicles.
To qualify, there must be no fees, you must have access to your money within seven days and the minimum transaction is £10 at most. Switching a CAT marked account should be easy.
What if there's no Cat mark?
Look behind the headline rates on accounts that do not have a CAT mark. You could have to give 90 days' notice to withdraw money or face a £30 fee for switching. If in doubt, ask when you are applying.
Can I invest a cash Isa in shares?
If you open a mini cash Isa, you can only take out a mini stocks and shares Isa, with any other provider you like, where you are limited to a £3,000 investment rather than £7,000 into a maxi Isa. You cannot take out both a mini and maxi Isa in the same tax year.
Cash Isas at a glance
• Maximum savings £3,000 in this tax year, interest is tax-free
• You can only take out one plan with one provider each tax year
• You do not have to tie your money up to earn tax free interest
• You can switch to a plan run by another organisation if your rate becomes uncompetitive
• A CATmark means there are no charges on the account and you have access to your money within seven days at the outside.
