ISA Rates

The new e-ISA launched by First Direct offers savers a tempting 2.5% fixed interest rate until June 2011. The ISA only requires a minimum investment of just £1 and allows you to access your cash at any time.

The latest ISA offering from First Direct allows you to transfer funds from your existing ISA savings from other providers. However, cunningly they will not allow you to transfer from your existing First Direct ISA, some of which will only be earning you as little as 0.2%

First Direct's easy access ISA is a competitive offering and one of the best deals in the market. It also provides security to your savings as the rate won't be cut during the year. On the flip side,if the rates increase, you can easily withdraw your cash and move your savings elsewhere without a penalty charge.

Other alternatives include Abbey's 2 year Fixed Rate Postal ISA which goes on sale today. This savings offer does require you to tie up your cash for two years but in return you will get a 3.5% rate fixed until February 2012 and like the First Direct ISA only requires a minimum investment of £1. The downside to this account is that you don't have easy access to your cash without paying a penalty.

If you are looking for a higher rate and have a more substantial savings pot then Saga are currently paying its savers 3.85%. However you need £30,000 in the account and must be over the age of 50.