Is Your Cash Working For You? Make Sure You Take Advantage of your ISA Allowance!

A cash ISA can form part of your financial plan and help to achieve your long term goals. Challenger banks have launched new accounts that are offering increasingly higher rates over the last couple of months.

In April last year, you would earn only 1.15%, compared with the 2.3% that is available now. 1.52% is now available on a one year fixed rate ISA from Chartered Savings Bank.

If you don;t need your money back in the short term, taking advantage of a one,two or three year fixed deal could get you a higher rate.

ISAs are also useful if you are an additional rate tax payer as while non ISA fixed rate savings products can yield a higher return, the lack of a personal savings allowance reduces their attractiveness.

A variable rate ISA or easy access savings account may be more suitable if you need to maintain access to your money.

The best fixed-rate cash ISA deals

One Year

A rate of 1.52% is on offer from Charter Savings Bank. An inital amount of £1,000 is required for this online only account, with the ability to accept ISA transfers in.

Two Years

The highest rate is offered by Shawbrook at 1.7%. An intial amount of £5,000 is required.

Three Years

A rate of 1.8% is offered by Aldermore with an inital investment of £1,000 required.

Five Years

Shawbrook again tops the 5 year rates at 2.3%, with a minimum inital deposit of £5,000 required.

Speak to your financial adviser about ensuring you have the right mix of investments in line with your attitude to risk and investment horizon.  Your adviser can construct a financial plan for you that will enable you to meet your financial goals.

The value of investments and income from them may go down as well as up and you may not get back the original amount invested.