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Cash ISAs interest rates | Bestinvest

ISAs mitigate the marginal rate of income tax investors are charged on their savings. The current limit for a cash ISA is £3,600 however this will increase to £5,100 from 6th April 2010. For those aged over 50 this change will occur from 6th October 2009. Investments that are taken out of the ISA wrapper lose their tax advantages.Cash ISA’s are treated as a saving a fall under the Government Guaranteed Financial Services Compensation Scheme (FSCS). For a fuller explanation of how this works please see the Bank Deposit Accounts .

Cash ISA

Cash ISAs have variable rates of interest that can be changed by the provider at any time. Typically they have a short notice period none at all and minimum deposits will vary. Accounts may also have bonus periods after which the interest rates may be low. Although the main variable terms are shown here, investors are advised to check with providers before they purchase them.

Cash ISA Gross AER As of Notice Min Deposit Introductory Bonus Net Lower rate income tax Net Higher rate income tax
Aldermore 30 Day Cash ISA Issue 2 2.65% 08/03/2010 30 days £3,600 N/A 3.18% 3.71%
Alliance & Leicester: Flexible ISA 3.50% 08/03/2010 Instant £1 N/A 4.20% 4.90%
Barclays Bank: Golden ISA 3.10% 08/03/2010 Instant £1 N/A 3.72% 4.34%
Birmingham Midshires: ISA Extra 2.70% 08/03/2010 Instant £500 N/A 3.24% 3.78%
Buckinghamshire BS: 180 Day Monthly Income Cash ISA 2.86% 08/03/2010 180 days £100 N/A 3.43% 4.00%
Marks & Spencer Money: Flexi Cash ISA 2.65% 08/03/2010 30 Days £3,600 N/A 3.18% 3.71%
Nationwide e-ISA 2.75% 08/03/2010 Instant £1 N/A 3.30% 3.85%
Newcastle BS: Reward Saver ISA 3.00% 08/03/2010 120 days £500 1% for 12 Months 3.60% 4.20%
NS&I Direct ISA 2.50% 08/03/2010 Instant £100 N/A 3.00% 3.50%
Santander: Flexible ISA 3.50% 08/03/2010 Instant £1 N/A 4.20% 4.90%

Fixed Cash ISA

These are effectively fixed rate bonds in an ISA wrapper and the terms vary between one and five years. Each account will have different penalties for breaking these investment terms and investors are advised to check with the provider. Tax is paid at the end of the investment period.

We have provided an Annual Gross Equivalent Rate which calculates the tax benefits and compounded growth on income earned over the term of the investment.

Fixed Cash ISA Gross AER As of Term Min Deposit Introductory Bonus Net Lower rate income tax Net Higher rate income tax
Yorkshire Bank: Cash ISA Fixed Rate Bond ISA Issue 3 5.00% 08/03/2010 5 £2,000 N/A 6.00% 7.00%
Alliance & Leicester: 2 Year Fixed Rate ISA Bond 3.50% 08/03/2010 2 yrs £500 N/A 4.20% 4.90%
Alliance & Leicester: Flexible ISA 3.50% 08/03/2010 Ongoing £1 N/A 4.20% 4.90%
Birmingham Midshires: 2 Year Fixed Rate ISA 3.50% 08/03/2010 2 yrs £500 N/A 4.20% 4.90%
Birmingham Midshires: 5 Year Fixed Rate ISA 4.55% 08/03/2010 5 yrs £500 N/A 5.46% 6.37%
Cheltenham & Gloucester: 2 Year Fixed Rate ISA Issue 4 3.50% 08/03/2010 2 yrs £100 N/A 4.20% 4.90%
Cheshire Building Society: 12 Month Fixed Rate Cash ISA Issue 17 3.00% 08/03/2010 1 yr £1,000 N/A 3.60% 4.20%
Clydesdale Bank: Cash ISA Fixed Rate Bond 3.00% 08/03/2010 1 yr £1 N/A 3.60% 4.20%
Clydesdale Bank: Cash ISA Fixed Rate Bond ISA Issue 3 5.00% 08/03/2010 5 yrs £2,000 N/A 6.00% 7.00%
Halifax : 3 Year Fixed Rate ISA Saver 3.75% 08/03/2010 3 yrs £500 N/A 4.50% 5.25%
Halifax: 2 Year Fixed Rate ISA Saver 3.50% 08/03/2010 2 yrs £500 N/A 4.20% 4.90%
Halifax: 4 Year Fixed Rate ISA Saver 4.25% 08/03/2010 4 yrs £500 N/A 5.10% 5.95%
Julian Hodge Bank: 4 Year Fixed ISA 4.15% 08/03/2010 4 yrs £3,600 N/A 4.98% 5.81%
Julian Hodge Bank: Cash ISA 3 Year 3.90% 08/03/2010 3 yrs £3,600 N/A 4.68% 5.46%
Leeds Building Society: 2 Year Fixed Rate ISA Issue 15 3.50% 08/03/2010 2 yrs £1 N/A 4.20% 4.90%
Leeds Building Society: 5 Year Fixed Rate ISA Issue 16 4.60% 08/03/2010 5 yrs £1 N/A 5.52% 6.44%
Nationwide BS: 3 Year Fixed Rate ISA Bond 4.40% 08/03/2010 3 yrs £1 N/A 5.28% 6.16%
Post Office LTD: Fixed Rate Cash ISA Issue 2 3.00% 08/03/2010 1 yr £1 N/A 3.60% 4.20%
Principality BS: 2 year Direct Fixed Cash ISA 52 3.50% 08/03/2010 3 yrs £1 N/A 4.20% 4.90%
Saga: 3 Year Fixed ISA 3.90% 08/03/2010 3 yrs £1 N/A 4.68% 5.46%
Santander: Flexible ISA 3.50% 08/03/2010 Ongoing £1 N/A 4.20% 4.90%
Yorkshire Bank: Cash ISA Fixed Rate Bond Issue 2 3.00% 08/03/2010 1 yr £2,000 N/A 3.60% 4.20%

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