Best Cash ISA Tax Free Savings Accounts for the New Tax Year and Cash ISA Rules

The New Tax year is virtually upon us and nearly everyone over age 16 has a fresh £3000 allowance to add to their tax free Cash ISA accounts.

But first, if you have not already used your £3000 cash isa allowance for the 2006-07 tax year, then today (5th April) is your last day ! probably the easiest way would be to top up your existing Cash ISA which you should be able to do over the phone or at the branch.

A quick Summary of Cash ISA Rules

* The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.

* The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2007-08.

* You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).

* You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.

* Most providers allow for transfers in. And ALL should allow you to transfer out.

* Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.

* To maximize your tax free interest, it is best to open your account at the start of the tax year.

The following are a selection of the current top Cash ISA accounts




Out of all of the above accounts, the one that I find the most appealing is the Barclays Instant access 6.5% rate which is fixed for 12months. Which after 12months drops to 5.5%, which is still a good rate, and you always have the option of transferring the account elsewhere at that time. The best longer term fixed rate cash ISA's are the Derbyshire at 6% for 2 years and the Halifax at 6% for 4 years.

Even if interest rates do rise do rise to 5.5%, I doubt that the 6.5% and the 6% rates shown above would be bettered, and in the meantime you will have forgone receiving interest tax free on your savings, which would negate a marginal increase in interest rates.

By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2007 - All Rights Reserved

The UK Money Saving & Investing Forums is a free online publication providing, FREE Online Tools including Credit Score Calculator and the Savings Calculator . Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide . Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from 0% Credit card deals , to the state of the Housing market . The best Savings & Deposit Accounts etc.

This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk

Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liabiliity for its accuracy, which is for general information purposes only as a starting point for your own research.

Some of the best Cash ISA's available post the rise in UK interest rates to 5.5% are -


Derbyshire 6.00% fixed for two years

NS&I at 6.05%

Northern Rock at 6.01% for a 1 year term

Egg at 6.05%

Norwich & Peterborough BS 2 Year Fixed Rate Mini Cash ISA - 5.90%

The deadline for the Barclays 6.5% ISA is today, so get a move on ! Go to the branch today if you want this one.

UK Interest rates were recently increased to 5.75% and now cash ISA providers are starting to reflect the change by raising interest rates on the cash element of individual savings accounts. The following table represents a selection of the best Cash ISA rates currently available.

But first, a quick Summary of Cash ISA Rules
* The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.

* The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2008-09.

* You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).

* You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.

* Most providers allow for transfers in. And ALL should allow you to transfer out.

* Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.

* To maximize your tax free interest, it is best to open your account at the start of the tax year.



The following are a selection of the Current Best Cash ISA accounts (includes rate changes due within 2 weeks)
Financial Institution Interest Rate Fixed Period Minimum £ Comments

BMW
6.54%
1 Year
£100
Yes this ISA is run by BMW the motor company

Ruffler Bank
6.40%
Instant
£15,000
Would need to transfer a cash Isa to meet opening requirements of £15k

Nat Savings
6.30%
Instant
£1,000
Tracks the base rate +0.55% until April 2008

Kent Reliance
6.21%
Instant
£1
Tracks the BOE base rate

Nationwide
6.15%
1 years
£1
Longer fixes at same rate available

Halifax
6.10%
3 years
£3,000

Scarborough
6.10%
30day
£1,000

Northern Rock
6.01%
1 year
£500

Abbey
6.00%
Instant
£1
6.25% above £9000

Northern Rock
6.01%
1 year
£500

ING Direct
6.00%
Instant
£1
Includes 1.4% bonus, - rate shown is 12 month return

Derbyshire
6.00%
2 years
£1,000
Have not announced a change in rates since May.

Out of the above accounts the two instant access trackers by Kent Reliance and National Savings stand out, especially as expectations are for further rises.

The BMW 1 year fix is also worth looking into as the highest payer.

By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2007 - All Rights Reserved

Moneyforums is a FREE site which provides UK Money Saving Guides, Tools and Forums including - Credit Score Calculator and the Savings Calculator . Mortgage and Tax Calculators. Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide. Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from The best Savings & Deposit Accounts , Regular Savers and Cash ISA's and more.

This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk

Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liability for its accuracy, which is for general information purposes only as a starting point for your own research.

UK Interest rates were raised to 5.75% in July and over the last 6 weeks many cash ISA providers have reflected the change by raising interest rates on the cash element of individual savings accounts. The following table represents a selection of the best Cash ISA accounts currently available.



Best of the above:

Instant Access

The two instant access trackers by Kent Reliance and National Savings stand out, especially as expectations are for further interest rate rises later this year.

Fixed Rates

The BMW 1 year fix is paying an extraordinarily high 6.67% rate. The Halifax 2 year fix also looks good at 6.25% with the added bonus of allowing transfers in

By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2007 - All Rights Reserved

Moneyforums is a FREE site which provides UK Money Saving Guides, Tools and Forums including - Credit Score Calculator and the Savings Calculator . Mortgage and Tax Calculators. Money Saving Guides such as Credit Card Stoozing , Savings Tree , Money Saving Guide. Personal Finance Discussion Forums open to ALL, supported by experienced moderators, to discuss any personal finance topics from The best Savings & Deposit Accounts , Regular Savers and Cash ISA's and more.

This article maybe reproduced if it is reprinted in its entirety with links to http://www.moneyforums.co.uk

Disclaimer - Moneyforums.co.uk does not guarantee the accuracy of the information provided, and does not accept any liability for its accuracy, which is for general information purposes only as a starting point for your own research.

The credit crunch has resulted higher money market interest rates, which have to some extent been passed onto savers in the form of higher variable rate and fixed rates for mini cash ISA individual savings accounts. The following table represents a selection of the best Cash ISA accounts currently available.



Best of the above:

Instant Access

The two instant access trackers by Kent Reliance and National Savings stand out.

Fixed Rates

The BMW 1 year fix is paying an extraordinarily high 6.70% rate. The 1 year 6.5% fix by Norwich & Peterborough is also good. For longer term, the Halifax 2 year fix at 6.25% and the Derbyshire 2 year fix at 6.30% look good, with the added bonus of allowing transfers in.

By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2007 - All Rights Reserved

The loss of confidence in the financial sector due to the US subprime mortgage sparked credit crunch had resulted higher money market interest rates over the last few months. Though as warned in several previous articles, these high rates are slowly in the process of being withdrawn from the market in advance of cuts in UK interest rates. Though opportunities do still exist to lock in relatively high rates before the first cut in UK interest rates. The following table represents a selection of the best Cash ISA accounts currently available.


Selection of the Current Best Cash ISA accounts (Nov 07)

Financial Institution Interest Rate Fixed Period Minimum £ Comments
Ruffler Bank 6.40% Instant £9,000 Would need to transfer a cash Isa to meet opening requirements of £9k(down from 15k)
Nat Savings 6.30% Instant £1,000 Tracks the base rate +0.55% until April 2008 (No transfer ins)
Kent Reliance 6.21% Instant £1 Tracks the BOE base rate
Nationwide 6.15% 1 years £1 Longer fixes at same rate available
Halifax 6.25% 2 years £3,000 1 year fix 6.20%, 2 year 6.25%, 4year 6.5%- Good for transfers into.
Northern Rock 6.20% 1 year £500 The Government has provided a guarantee to savers
Abbey 6.00% Instant £1 6.25% paid on balances above £9000
Derbyshire 6.30% 2 years £1,000 Are usually slow in improving on rates in response to market changes.



Best of the above:

Instant Access

The two instant access trackers by Kent Reliance and National Savings continue to stand out. For those with at least £9k its worth taking a look at Ruffler bank for a transfer in.

Fixed Rates

The best fixed rates have now been withdrawn. Currently the best 2 year fixes are with Halifax at 6.25% and the Derbyshire at 6.30% , with the added bonus of allowing transfers in. There also exists a 4 year fix with the Halifax at 6.50%

Summary of Cash ISA Rules

The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.
The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2008-09.
You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).
You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.
Most providers allow for transfers in. And ALL should allow you to transfer out.
Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.
To maximize your tax free interest, it is best to open your account at the start of the tax year.


By Shahla Walayat
http://www.moneyforums.co.uk

The loss of confidence in the financial sector due to the US subprime mortgage sparked credit crunch had resulted higher money market interest rates over the last few months. Though as warned in several previous articles, these high rates are slowly in the process of being withdrawn from the market in advance of cuts in UK interest rates. Though opportunities do still exist to lock in relatively high rates before the first cut in UK interest rates. The following table represents a selection of the best Cash ISA accounts currently available.


Selection of the Current Best Cash ISA accounts (Nov 07)

Financial Institution Interest Rate Fixed Period Minimum £ Comments
Ruffler Bank 6.40% Instant £9,000 Would need to transfer a cash Isa to meet opening requirements of £9k(down from 15k)
Nat Savings 6.30% Instant £1,000 Tracks the base rate +0.55% until April 2008 (No transfer ins)
Kent Reliance 6.21% Instant £1 Tracks the BOE base rate
Nationwide 6.15% 1 years £1 Longer fixes at same rate available
Halifax 6.25% 2 years £3,000 1 year fix 6.20%, 2 year 6.25%, 4year 6.5%- Good for transfers into.
Northern Rock 6.20% 1 year £500 The Government has provided a guarantee to savers
Abbey 6.00% Instant £1 6.25% paid on balances above £9000
Derbyshire 6.30% 2 years £1,000 Are usually slow in improving on rates in response to market changes.



Best of the above:

Instant Access

The two instant access trackers by Kent Reliance and National Savings continue to stand out. For those with at least £9k its worth taking a look at Ruffler bank for a transfer in.

Fixed Rates

The best fixed rates have now been withdrawn. Currently the best 2 year fixes are with Halifax at 6.25% and the Derbyshire at 6.30% , with the added bonus of allowing transfers in. There also exists a 4 year fix with the Halifax at 6.50%

Summary of Cash ISA Rules

The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.
The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2008-09.
You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).
You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.
Most providers allow for transfers in. And ALL should allow you to transfer out.
Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.
To maximize your tax free interest, it is best to open your account at the start of the tax year.


By Shahla Walayat
http://www.moneyforums.co.uk

By: Shahla_Walayat


Concerted central banks action is attempting to cut money market interest rates, this has met with some success with the LIBOR rate falling from a peak of 6.8% to the current 5.75% This is resulting in a cut in savings interest rates, however the likelihood is that there will be further deep cuts in UK interest rates during 2008, therefore the warnings that I have been issuing over the last 5 months to lock your in Cash ISA rates now at high levels still stands, though the fixed rates approaching 7% are long gone.




Selection of the Current Best Cash ISA accounts (Jan 08)

Financial Institution Interest Rate Fixed Period Minimum £ Comments
Ruffler Bank 6.14% 30 day £9,000 Would need to transfer a cash Isa to meet opening requirements of £9k(down from 15k)
Nat Savings 6.05% Instant £1,000 Tracks the base rate +0.55% until April 2008 (No transfer ins)
Kent Reliance 6.05% Instant £1 Tracks the BOE base rate
Nationwide 6.15% 1 years £1 Longer fixes at same rate available
Halifax 6.25% 2 years £3,000 1 year fix 6.10%, 3 year 6.20%, 4year 6.5%- Good for transfers into.
Northern Rock 6.20% 1 year £500 The Government has provided a 100% guarantee to savers
Cheshire BS 6.25% 1 year £1000 12 month fix (11th issue)
Bradford & Bingley 6.20% 1 year £1,000 1 year term



Best of the above:

Instant Access

The two instant access trackers by Kent Reliance and National Savings continue to stand out. For those with at least £9k its worth taking a look at Ruffler bank for a transfer in for 30day access.

Fixed Rates

Currently the best 2 year fixes are with Halifax at 6.25% and the Cheshire at 6.25% , with the added bonus of allowing transfers in. There also exists a 4 year fix with the Halifax at whopping 6.50% a rate that compares well with the high rates of 6.75%+ available just over a month ago.

Summary of Cash ISA Rules

The CASH ISA accounts are TAX FREE, and do not have to be entered onto any tax returns.
The Allowance for 2007-08 is £3000, this is set to rise to £3,600 for 2008-09.
You can only open ONE New cash isa per tax year, and you can add new monies to One Cash Isa per tax year (see transfers).
You do not have to open a Cash ISA with your existing provider, i.e. you can open an account at different providers every year.
Most providers allow for transfers in. And ALL should allow you to transfer out.
Once you withdraw from a Cash ISA you cannot then then re-deposit into. The £3000 limit refers to total deposited, and not maximum account balance. So if you deposit £3000, and withdraw £1000, then you cannot re-deposit that £1000 in the same tax year as you have used up your £3000 deposit limit.
To maximize your tax free interest, it is best to open your account at the start of the tax year.


By Shahla Walayat
http://www.moneyforums.co.uk

Copyright © http://www.moneyforums.co.uk 2008 - All Rights Reserved

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