COMMENT
Cracking Cash ISAs

By Alison Hunt (TMFAlly)
July 7, 2005

Mini-cash ISAs are great – you can pay in up to £3,000 each year (if you're over 16) and not only do you receive a great rate of interest, you don't lose a fifth straight away to the taxman, either. Plus, you don't even have to declare it on your tax return – hurrah!

Well, cash ISAs are great, but only as long as you keep an eye on them. Although you may have opened up a top account, is the rate you're getting still in the Best Buy table? They tend to drop out of the tables as quickly as they enter them – and every 0.1% drop in interest rate is cash that's no longer going into your account.

But luckily for you, we've compiled a list of the Best Buy mini-cash ISAs to transfer to on the market at the moment. And we're not simply talking about the best mini-cash ISA accounts – these accounts will specifically not charge a fee should you transfer your current ISA in. What's more, you won't be charged should you need to transfer out again in the future.

Best Buy Mini-Cash ISAs to Transfer To:

Provider	Account Name	Rate / AER	Min-Max Investment	Interest Paid	Available via:
Halifax	ISA Saver Direct	5.15%	£1 - £30k	Yearly	Internet/Phone
Kent Reliance BS	Mini-cash ISA	5.11%	£1 - £21k	Yearly	Branch/Post
National Counties BS	Cash Mini ISA	5.10%	£1 - £30k	Yearly	Phone/Branch/Post
Leek United BS	Mini-cash ISA	5.00%	£1 - £30k	Yearly	Branch
Smile	Mini-cash ISA	5.00%/4.25%*	£1 - £30k	Yearly	Internet

Source: Moneyfacts  

*Note: The 5% rate is only applicable to Smile account holders - all other applicants will receive 4.25%

The highest paying account is therefore the Halifax ISA saver direct – perfect if you're happy to bank by phone or on the internet. If you prefer to bank in the old fashioned way with a passbook and branch, Kent Reliance or National Counties building societies may appeal to you more.  

It's also worth noting that the Alliance & Leicester Direct ISA (now no longer taking applications) has dropped its annoying £25 fee to transfer out – but as those who signed up are still earning 5.4% AER there's not much point transferring yet anyway!    

Find out more in our ISA Centre.