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Best ISA Investments and Returns

Some of the best ISA investments and returns actually come from high street banks, who are able to offer a competitive interest rate for your savings account and a range of options for all customers. Broadly speaking there are two types of ISA investment accounts you can opt for; cash ISAs and shares and stocks ISAs.

A cash ISA is the most popular savings account. It does exactly what is says on the tin - you pay in your money and watch the interest mount up. Because you've already earned the money you put it in you don't have to pay any kind of tax on the savings; the tax has already been taken out in the form of income tax when you received your wage, so there are huge tax advantages associated with a cash ISA account.

A stocks and shares ISA account is a bit different. Your money goes into shares within the market and has the potential to return a substantial amount depending on the performance of the market - or the potential to drop in price. When you place £5,340 per tax year in a stocks and shares ISA you can only put £2,680 into a cash ISA, so the amount you can receive is slightly reduced with a stocks and shares ISA. These accounts are really only ideal for people who have faith in the market and sound financial advice behind them to do so.

 

Best ISA Investments - Providers

Halifax ISA Direct Reward (3.00% Interest APR): Transfer allowed between accounts, additional 0.20% interest for current customers and minimum savings of £1 (at least annually) for the account.

Birmingham Midshires ISA Extra (2.92% Interest APR): Unlimited withdrawals with no fees, bonus period of additional 1.20% for 15 months and the ability to transfer your savings after the three month period.

Nationwide Online ISA (2.75% Interest APR): Additional 1.75% bonus up to 01/01/2013, transfers allowed but customers must already bank with Nationwide.

Lloyds TSB Cash ISA Saver (2.65% Interest APR): 1.65% interest in bonus periods but transfers allowed, minimum £1 investment and you can call up to obtain an account quickly.

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