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Every year millions of people will open new ISAs to take advantage of generous tax free savings allowances and here at ISA Rates we can guide you through the process of finding the highest ISA interest rates available.
We'll help you compare ISA rates whether you are looking for the best cash ISAs, managed stocks and shares ISA or self-select ISA. And that's not all; we will first introduce you to the ISA, educate you on the things to look out for when opening one and what you should know about the restrictions placed on them. You'll find out the pros and cons of fixed rate bond ISAs and when you should consider opening one.
What Is An ISA?
An ISA or individual savings account is a government initiative to try an encourage us, the general population, to save for our futures. The basis of an ISA is that it forms a tax-free haven for our savings and/or stock market interests.
The current ISA system was brought in by the current Labour government in 1999 and replaced the old and somewhat outdated system of Tax Exempt Special Savings Accounts (TESSAs) and Personal Equity Plans (PEPs).
Full ISAs can only be opened by persons over the age of 18 but individuals as young as 16 years of age can open cash ISAs or the cash component of a stocks and shares ISA. See our full guide on what is an ISA for more details.
Keeping Things Simple With Cash ISAs
Many people do not want to utilise any of their tax free share investment allowance and so the market for cash ISAs was born for those just looking to save some of their money away from the taxman each year.
The cash ISA season is around March and April each year and rates at this time can rise since many people who open cash ISAs will tend to use the same company each year in order to simplify the process. So, by providing the best ISA rates in this way, banks and building societies can sometimes get return savers for very long periods of time.
Compare ISAs To Get The Best Rates
Banks and other institutions in the ISA market try their best to entice you with the best deals but sometimes those that look best on paper actually fall down when you look into the details. So look very carefully at the details when you compare ISAS to avoid opening an ISA which you will later regret.
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