What should I look for when comparing cash ISAs?
Every cash ISA allows tax free savings each tax year, but other features of a cash ISAs vary between providers, including:
Minimum deposit - some providers have a minimum deposit of just £1
Interest rates - generally the higher the minimum deposit and the tighter the restrictions, the better the rate
Access to your cash - some cash ISAs offer instant access, others have notice periods.
Fixed rates - these usually offer the best rates, if you can lock your money away for a period of 1-5 years
The interest rate and restrictions will vary from one account to another, so shop around and use the tables to make a cash ISA comparison and find the best one for you.
What are the benefits of ISAs
The primary benefit of ISAs is the tax advantage that allows individuals to profit from savings or shares without paying income or capital gains tax on that return.
The secondary benefit is that you are saving some of your income. Whether you've a particular savings goal in mind or you just want to ensure you've got an emergency fund tucked away, an ISA can provide a simple way to help achieve this.