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How Do I Find the Best Cash ISA Around

by Jim ONeil on May 17, 2011

in ISA's Individual Saving Accounts

If you are looking for the best ISA rates, the Internet is the best tool at your disposal. Numerous sites available offer tables of the best ISAs with current rates. While comparing the different ISAs available, there are a few things to keep in mind to make sure you are indeed getting the best ISA accounts to suit your needs.

The biggest different in ISAs for the common investor is fixed-rate and variable-rate. In most cases, the fixed-rate ISA will offer a better interest rate, but this does not come without its drawbacks. The biggest of these is the money cannot be withdrawn early without incurring a penalty.

You may find that you have to forfeit all interest earned to that point.

A variable-rate ISA is a bit more flexible. Advanced notice is required to remove the money from the account, but interest is usually earned up to the notice period. While the account is in holding, no interest can be earned, but at least you have the benefit of receiving everything up until that point.

If the ISA had a bonus offer, some or all of the bonus earnings may have to be forfeited. Some providers will prorate the interest through the withdrawal period, while others will make the investor forfeit any bonus interest because the ISA has not come to complete term.

Providers have their own rules, so read everything over carefully before opening the account.

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