COMMENT

Britain's Best Cash ISAs

By Jane Mack (TMFJane)
March 14, 2006

As someone who's been saving in a Cash ISA for some years now, I've managed to accumulate quite a tidy sum of money. The trouble is I'm lazy and instead of chasing the best interest rates I've simply rolled it over each year with all the money staying in the same account.

So, if I were to pull my finger out and look for a better paying account what should I be looking for? My Cash ISA was intended to be my mini emergency fund for things like when the washing machine broke down but when no mini emergencies cropped up it turned into my major emergency fund ie: for job loss or a replacement car.

It's still there for the latter but it's also turned into a long-term savings fund, so really I should be looking for an account that pays a high interest rate and which will accept the transfer of my current savings.

According to Moneyfacts, the top paying accounts are as follows:

Company	Account	Notice	Deposit	Transfers In	Gross	AER
Saffron Walden BS	Mini Cash Tracker ISA 30 day Notice	30 Days (Postal)	£3,000	Yes	5.3%	4.9%
Portman BS	25 Day Notice ISA	25 days	£3,000	No	5.25%	4.87%
Alliance & Leicester	Direct ISA Issue 2	None	£1	Yes	5.2%	5.2%
Tipton & Coseley BS	Premier ISA	30 Day (postal)	£3,000	No	5.15%	4.97%
Halifax (available via the Fool)	ISA Saver Direct	None	£1	Yes	5%	5%
Bradford & Bingley	eSavings ISA	None	£1,000	Yes	5%	5%

Source: Moneyfacts

Where the 'gross' figure is different to the 'AER', it means the rate includes a temporary bonus whereas I'd prefer to get the higher rate for the whole year. And as I also want instant access to my money I can see at a glance that I should be going for the Alliance & Leicester.

The tax-free benefits of the Cash ISA can't be emphasised enough so if you haven't opened one yet, then do so. If you've got the money, remember you've still got time to open a cash ISA for the current financial year which will enable you to salt away £3,000 before April 6th and then a further £3,000 for the new tax year. That's £6,000 earning interest that is sheltered from the taxman and what could be better than that?

Open a Cash ISA today