Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 191.2% (fixed). Total repayment amount £1726.68 and total interest is £976.68. 12 monthly payments of £143.89. My Financial Broker is a broker, not a lender*.
* As a broker, we are unable to ascertain exactly how many customers take out a loan or the lender’s rate of interest particular to that customer, therefore our calculation is based on the mean APR of our panel of lenders.
Cash ISAs offer a safe and low-risk way to save your money – and you can open an account with as little as £100, having peace of mind knowing that up to £85,000 is protected via the Financial Services Compensation Scheme.
You have a current annual contribution allowance of up to £20,000 and any earnings are completely tax-free. You can invest in multiple ISAs too, when you put money into a cash ISAs, stocks and shares or peer to peer investments.
To find the best rates and terms, you can use a comparison table and compare cash ISAs. The average ISA is usually open for 1 to 7 years, and should offer around 1% AER or higher, depending on how long your fixed term is.
- Annual allowance – currently up to £20,000
- Can transfer one ISA to another
- Protected by the FSCS
- Easy access available
How Do You Get the Best Cash ISAs?
The best cash ISAs that offer the highest rates are based on you being able to make a higher minimum contribution (e.g £500) and your money is locked in for up to 5 or 7 years, with no easy access.
By comparison, some of the lower rate ISAs allow you to make low minimum contributions, such as £100, and the luxury of having easy access. So you can take out your money and put it back in whenever you want, subject to the current £20,000 limit.
What are the Types of Cash ISAs?
There are a few main types of Cash ISA – we’ve outlined these below, to give you a better idea of your options:
This is a cash ISA that allows you to withdraw cash whenever you want, but it could take a few days before you receive the money into your account.
This is a cash ISA where you can access your money at any time, instantaneously.
As the name suggests, with a Notice ISA, you need to provide the bank with notice about any withdrawals (for example a notice of 60 days). Otherwise, you could be penalised with less interest.
With a fixed term agreement, your cash ISA is tied up for a whole term (such as 1, 2 or 5 years) with a specified fixed rate.
This is a kind of cash ISA which requires you to top up cash into the account on a monthly basis to receive the interest rate offered.
What is the Criteria for Applying?
- UK resident (Wales, Scotland and Ireland also available)
- 16 or over for a cash ISA
- 18 or over for a stocks and shares ISA or an innovative finance ISA
Compare Cash ISAs
To compare cash ISAs effectively using a broker service, you need to consider your requirements and find the balance between earning a higher interest rate and being able to access funds when you need them.
Some savers may be looking to maximise their earnings, in which case, a large contribution with no access for 5 years may be a good option.
Others may be looking to make a small contribution but access their funds when they need them, giving them a lower return.
Many consumers like to do a combination, putting some money into a cash ISA, and some money into other saving accounts too, such as innovative finance ISAs. Provided that it is within the £20,000 ISA allowance, you can invest in multiple products and it is still tax-free.
How to Apply for a Cash ISA
You can open a cash ISA on the same day you apply, and can open the account with as little as £100. However, for some accounts, you may require a minimum initial contribution, such as £250, £500 or even £1,500.
You can apply with a bank or building society directly, or through a broker website, where you will be taken to the account provider’s form. You can then enter your details and get started today.Apply Now