Get the best rate for your cash ISA investment

The limits on how much you can save in a cash ISA investment plan are increasing every year. It is well worth your while checking on the best interest rates available on the high street.

Often the best rates of interest are to be found with online ISA savings accounts, so if you are happy with internet banking, these can be the smartest choice.

Cash ISA rates tend to change fairly regularly, so it pays to keep an eye on the latest deals and offers, with updates available in newspaper financial pages or at an online site like www.moneysavingexpert.com or www.moneysupermarket.com. Be wary of attention-grabbing interest rates that revert to a lower rate after a year. That's the time to move your money.

Northern Rock (www.northernrock.co.uk) offers a 3 year fixed rate e-ISA with a 3.8% interest rate. That looks attractive right now, and if interest rates stay low until 2014, could look like a very smart move. Withdrawals result in a loss of 120 days interest, and the maximum investment is £2 million.

The Halifax (www.halifax.co.uk) Direct Award ISA offers an easy access ISA with a variable interest rate of 2.6%, and a 0.2% bonus for Halifax current account holders. It's a decent starting point for a flexible cash ISA.

If you have been accumulating a substantial ISA fund, the NatWest (www.natwest.com) e-ISA offers interest rates of 2.5% on balances of over £30,000. You can make unlimited withdrawals without penalties, making this a handy cash ISA investment, if you are happy to make all your transactions online.



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