Mini Cash ISAs
Mini Cash ISAs were reclassified on April 6 2008 by Cash ISAs. Cash ISAs work in exactly the same way that Mini Cash ISAs did - they are savings accounts with tax free interest, which means you are entitled to keep everything you receive from your investment and not pay any tax. The main difference between Cash ISAs and Mini Cash ISAs is that Mini Cash ISAs only allowed a maximum investment of £3,000, whereas Cash ISAs have a maximum of £3,600, which means even more tax free saving potential.
ISAs were launched by the Government in 1999 and there were three types, Mini Cash ISAs, Mini Stocks and Shares ISAs and Maxi ISAs. Maxi ISAs offered a maximum saving of £7,000 per tax year, which could be in cash and stocks as investment. Mini Stocks and Shares ISAs had a maximum saving of £4,000 a year and Mini Cash ISAs offered £3,000 per year.
All Mini Cash ISAs and the 'cash' component of Maxi ISAs have been reclassified as Cash ISAs; all Mini Stocks and Shares ISAs and the 'stocks and shares' components of Maxi ISAs have been reclassified as Stocks and Shares ISAs.
Benefits of Cash ISAs are:
-
Can save up to £3,600 per tax year
-
No Withdrawal charges
-
Do not have to pay tax on any interest arising from the account
-
Do not have to declare any interest arising from the account
Cash ISAs are very flexible. You can put money in and take money out whenever you like, providing you do not exceed the £3,600 limit, so they are good for short term saving.
As with all types of savings account, it is important to shop around to find the best deal. Some Cash ISAs may seem like they are offering the best deal, but there may be terms and conditions like a full deposit of £3,600 to open the account or penalties for withdrawals that you need to be aware of.
See below for a selection of Cash ISA deals:
Alternatively click on ISA advertising links below:
Investment News Headlines
Please bear in mind that:
Investment ISAs are designed as medium to long term investments, for example at least five years.
The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
If you choose an index-tracking trust which invests overseas, exchange rate variations may cause the value of your investment to increase or decrease.
If you unsure what Investment ISA plan is right for you speak to an independent investment adviser.