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How to get the Best cash isa rates

The best cash ISA accounts enable you to enjoy a tax-free return without putting your capital at risk. High rate savings accounts can be difficult to find in the current financial climate. However, it is important to find a bank which offers the best interest savings account. If you are not currently getting the best online savings rate, you can perform a transfer.

What is a cash ISA?

A cash ISA enables savers to avoid the payment of taxation on any interest which has accrued. It works, subject to an annual limit, by placing a tax-free wrapper around your savings plan. During the tax years 2011/2012, each person is permitted to invest up to £5,340. Over a period of several years, it is possible to build a healthy nest egg for the future.

Ways to get the best cash ISA rates

Do not leave your money in the same account
Last year's top savings account is not necessarily going to be as competitive this year. Banks realise that customers open an account and stay put. So, loyal customers do not always get the highest savings rates. You should check the rates once a year. Provided that you are not already in a fixed-rate ISA, you are likely to be able to find an account which offers a better return. Compare high interest savings accounts online
While you could visit each website in turn and make a note of the different rates, this is not a particularly effective use of your time. It is a lot easier to use a comparison site, such as Moneysupermarket.com, Uswitch.com or Moneyextra.com, to perform this task for you. Consider using a few different sites to verify if the rates are correct and see if there are any exclusive deals. Fixed rate versus instant access accounts
The general rule is that you will enjoy a better return on your savings if you are prepared to tie-up your capital for a while. The longer the fixed term, the more interest financial institutions are prepared to pay you. However, there is no point in locking up your cash for five years if you plan to use the money for a deposit on a house in 12 months time. You will still be able to get your money, but you will pay a penalty which is equivalent to several months of interest on the amount which you have withdrawn.

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