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Pick of the cash ISA deals
By Rebecca Atkinson
If you are looking to reduce your tax bill ahead of the new tax year, then the easiest way to claw back some cash is by opening an ISA. The turmoil hitting stockmarkets at the moment may have put some people off investment, but if you are happier keeping your money in cash then you can invest up to £3,000 in an ISA this tax year.
Mini cash ISA rates are looking attractive at the moment as the end of the tax year approaches. Birmingham Midshires, part of the Halifax group, has launched an instant account paying 6.35% on deposits of at least £1,000.
Or Barclays Bank offers an instant mini-cash ISA paying 6.5% AER on deposits from £1. However, this rate includes a 1% bonus for 12 months. And if you have previous sums to transfer then bear in mind that this ISA doesn't allow transfers in.
If you don't mind giving 30-days' notice, then Scarborough Building Society offers a 6.3% ISA on deposits from £1,000.
Or Alliance & Leicester continues to offer a direct ISA for savers with as little as £1 to invest. The rate is 6.25% AER but this includes a 1% bonus until 31 May 2009.
Alternatively, you could opt for Saffron's 60-day notice account paying 6.25% on deposits of £1,000. Or Loughborough's 90-day notice ISA pays 6.1% on deposits from just £1.
Egg has launched an online instant access cash ISA paying 6.05% AER on deposits from £1. It also offers a rate guarantee to at least match the Bank of England interest rate until 5 April 2009.
If you are looking to transfer an ISA bringing your total balance to over £3,000 then you might consider a new product from Newcastle Building Society. The ISA Plus pays 5.5% AER on balances from £1 to £3,000 but increases to 6% for balances over £3,000. There is no limit for transfers and the account can be managed online, via telephone or in branch.
If you want a fixed rate ISA and have the full £3,000 to put aside then Halifax has a four-year fixed rate ISA paying 6.20% AER.
But if you've got less to save and want a fixed rate ISA, then Nationwide offers a one-year product paying 6.15% on deposits from just £1. It also offers a two-year account at the same rate.
Julian Hodge Bank just launched a one-year account also paying 6.15% if you are willing to invest the full £3,000.
Northern Rock pays 6.1% of deposits of £500 with its one-year fixed ISA, or Leeds Building Society has a three-year account fixed at 6.1% until 1 February 2011 for deposits from just £1.
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