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EnergyThe UK's best Cash ISAs
Filed under: Savings & ISAs
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With the ISA season in full flow, we look at the best Cash ISAs available right now.Let's start by looking at the top instant access Cash ISAs.
Instant access ISAs
The top instant access ISA is now the AA's Internet Access ISA Issue 2 which pays a cracking 3.5% rate.
Your guide to banking
Money-saving guide
Need to know: Savings
If you only have £1000 to spare for your ISA, then look at Cheshire Building Society's Direct Cash ISA – Issue 1 which has a £1000 minimum deposit. The account pays 3.35% but again doesn't accept transfers in from other ISAs. By contrast, Santander's top instant access ISA – the Direct ISA (Issue 9) - does permit transfers from other ISAs. The interest rate is a tasty 3.3% but the minimum deposit is also £2,500.
Your guide to banking
Money-saving guide
Need to know: Savings
If you can only deposit a small amount, take a look at the instant access ISAs from the Skipton or Newcastle Building Societies.
Top instant access Cash ISAs
You'll see that all of the accounts have bonuses either for a year or 18 months. I've got no problem with bonuses. They mean that your interest rate can't fall below a certain level for the duration of the bonus. So with the Cheshire account, for example, your interest rate can't fall below 2.35% until October 2013.
Just remember that the interest rate on your account will probably crash once the bonus expires.
That said, there is one bonus I don't like – Santander's. It's a 'variable rate' bonus which means you don't have any guarantee at all. Stupid!
Short-term ISAs
Moving onto short-term fixed rate ISAs, it's a battle between Santander, Cheshire and Skipton.
If you can lock your money away for a year, then Santander is No.1 with its 1 Year Fixed Rate ISA. This account pays a fixed rate of 3.5%.
However, if you can lock your money away for just six more months, you could earn an extra 0.5%. That's because Cheshire offers a very attractive 18-month ISA that pays 4%. It's called the Cheshire Direct Fixed Rate ISA – Issue 3.
At two years, the stand-out account comes from BM Savings - the BM Savings 2-year Fixed Rate ISA. It pays 4.05% and the minimum deposit is only £500.
I should point out that you may be able to earn 4.1% from a rival 2-year ISA, but your final return depends on the outcome of some golf tournaments. I'm referring to the Santander 2 Year Fixed Rate Major. The basic interest rate is 4%, but Santander is also offering a little extra on top.
If Rory McIlroy, the Northern Irish wonderboy golfer, wins a golf 'Major' during the next two years, you'll get a 0.1% bonus.*
True, 0.1% isn't going to make a massive difference to your finances, but heck, every penny counts, and you may also have a bit of fun too. What's more, there's a decent chance that McIlroy will deliver as he's number one in the world rankings and won the US Open last year.
Top short-term fixed-rate ISAs
Just remember that the interest rate on your account will probably crash once the bonus expires.
That said, there is one bonus I don't like – Santander's. It's a 'variable rate' bonus which means you don't have any guarantee at all. Stupid!
Short-term ISAs
Moving onto short-term fixed rate ISAs, it's a battle between Santander, Cheshire and Skipton.
If you can lock your money away for a year, then Santander is No.1 with its 1 Year Fixed Rate ISA. This account pays a fixed rate of 3.5%.
However, if you can lock your money away for just six more months, you could earn an extra 0.5%. That's because Cheshire offers a very attractive 18-month ISA that pays 4%. It's called the Cheshire Direct Fixed Rate ISA – Issue 3.
At two years, the stand-out account comes from BM Savings - the BM Savings 2-year Fixed Rate ISA. It pays 4.05% and the minimum deposit is only £500.
I should point out that you may be able to earn 4.1% from a rival 2-year ISA, but your final return depends on the outcome of some golf tournaments. I'm referring to the Santander 2 Year Fixed Rate Major. The basic interest rate is 4%, but Santander is also offering a little extra on top.
If Rory McIlroy, the Northern Irish wonderboy golfer, wins a golf 'Major' during the next two years, you'll get a 0.1% bonus.*
True, 0.1% isn't going to make a massive difference to your finances, but heck, every penny counts, and you may also have a bit of fun too. What's more, there's a decent chance that McIlroy will deliver as he's number one in the world rankings and won the US Open last year.
Top short-term fixed-rate ISAs
Long-term ISAs
Finally, let's look at the best long-term fixed rate ISAs.
When you compare their rates with what you can get at one or two years, I think they look a bit weak. But here are the best ones anyway:
Top long-term fixed rate ISAs
Finally, let's look at the best long-term fixed rate ISAs.
When you compare their rates with what you can get at one or two years, I think they look a bit weak. But here are the best ones anyway:
Top long-term fixed rate ISAs
So there you have it. All of the UK's best Cash ISAs in one article. The choice is yours!
*The eligible tournaments are: The Masters in April 2012, 2013 and 2014; US Open in June 2012 and 2013, the Open Championships in July 2012 and 2013, US PGA championships in August 2012 and 2013. Accounts opened after 5 April 2012 won't be eligible for the bonus if McIlroy wins The Masters in 2012.
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*The eligible tournaments are: The Masters in April 2012, 2013 and 2014; US Open in June 2012 and 2013, the Open Championships in July 2012 and 2013, US PGA championships in August 2012 and 2013. Accounts opened after 5 April 2012 won't be eligible for the bonus if McIlroy wins The Masters in 2012.
More stories
