Interest rates have been creeping up, but some ISA providers have only just reflected this in their rate. Check out our top tips for the best paying new home for your ISA.
Although the recent interest rate rises have meant doom and gloom for millions with personal loans and homeowners, it's worth remembering that for some it's great news. If you have a tidy nest egg or rainy day fund, preferably salted away in a tax-free cash ISA, your money should be earning a tidy sum in interest.
What's more, as a number of lenders have finally decided to reflect the base rate rises in their ISA rates today, now's a great time to make sure your money's making all the interest it can. So dust off that ISA, check the rate of interest it's earning and be prepared to move that cash.
Anyway first things first: if you're a taxpayer with cash sitting in a savings account, you'll no doubt be itching to move it to a lovely, tax free cash ISA. So without further ado, here are the best, instant access cash ISAs for new money (and you may be pleased to see that none of the rates include short term bonuses
Top, Instant Access Cash ISAs for New Money
| Provider | Account | Rate/AER | Min-Max investment | Rate Guaranteed? | Accessed/ Conditions |
|---|---|---|---|---|---|
| National Savings and Investments | Direct ISA | 6.3% | £1k-£6k | Rate | Internet/ phone Min. addition /withdrawal £250. Transfers permitted from NS&I ISAs. |
| National Counties BS | Guaranteed ISA | 6.26% | £1-£3k | Rate guaranteed to be at least 0.3% above Base rate to 5.4.08 | Branch, Post, Phone. |
| Kent Reliance BS | Direct Mini Cash ISA | 6.21% | £1-£36k | No | Post |
| Egg | Cash ISA | 6.01% | £1-£3k | Rate guaranteed to be at least equal to Bank Base Rate to 5.4.09 | Internet |
| National Counties BS | Cash mini ISA Issue 2 | 6.01% | £1-£36k | No | Branch, Post, Phone |
Source: Moneyfacts
As you can see, if you have £1000 or more to put away you can take advantage of my current favourite - the NS&I Direct ISA, paying a fantastic 6.3% AER, which is guaranteed to be 0.55% above base rate until next April! Alternatively, National Counties BS will take deposits of £1 or more, and pay a very respectable 6.26%.
Alternatively, if you don't mind notice periods, Stroud & Swindon BS is offering 6.25% AER on its Branch or Direct 30 day notice ISAs (rates also include a 0.7% bonus for 12 months.) And Tipton & Coseley BS is paying 6.23% AER on sums of £3k-£9k in its Premier ISA. This rate includes a 0.35% bonus and requires 30 days notice for withdrawals.
Existing ISAs
Now, on the other hand, if you've been Foolishly squirreling your £3k cash ISA allowance each year for the last eight years, you could well have a very healthy nest egg of £24k (plus interest) to keep an eye on. What's more, you may well be happy to leave this money untouched for a few more years, so notice periods may not be an issue. If this describes you, take a look at the accounts in the next table.
Top Accounts For Existing ISAs
| Provider | Account | Rate/ AER | Min-Max Investment | Rate guaranteed? | Accessed/ Conditions |
|---|---|---|---|---|---|
| Halifax/ Bank of Scotland | Fixed Rate ISA Saver (2 year bond) | 6.25% | £3k-£36k | No | Branch/ Earlier access on closure only on 30 day notice + 180 days loss of interest |
| Kent Reliance BS | Direct Mini Cash ISA | 6.21% | No | Post. | |
| Halifax/ Bank of Scotland | Fixed Rate ISA (1 year bond) | 6.2% | No | Branch/ Earlier access only on 30 day notice + 180 days loss of interest | |
| Northern Rock | One year fixed rate ISA 66 | 6.16% | £500-£27k | No | Post/Phone Earlier access on 60 day loss of interest. On maturity converts to 30 day ISA. |
Source: Moneyfacts
It's also worth mentioning that Newcastle BS has a great deal for its own customers only (you need to have held an account for at least 12 months). Its Fixed Rate options ISA 9 is paying 6.23% AER on balances of £500 - £36k, but if you need access to your money earlier you'll forfeit 60 days interest.
Finally, you may have seen adverts regarding Abbey's Super ISA, paying a whopping 8.1% AER. If you're wondering why I haven't included it in my best buys, that's because it has a catch -- to take it out, you need to invest an equivalent sum into its Guaranteed Growth Plan. Obviously this is great if you've researched the plan and were intending to invest in it in the first place, but I would urge anyone else to be very wary -- especially as there are plenty of cash ISA accounts paying fantastic rates of interest with no catches.
So there you have it, some great cash ISA accounts for you to move your money to. What are you waiting for?