Finding the best cash ISA can be a tricky task as there are so many options. Some investors may look to use a cash ISA to form part of their total yearly ISA allowance. So here are Investoo.co.uk’s top tips when finding the best cash ISA:
1) Look for the best interest rate
Clearly it is important to search for the best possible interest rate when you decide to open a cash ISA. However, it is also important to look for some ‘security’ that the ISA interest rate will continue to be attractive in the future. It is common for some banks to use high rates in order to attract savers, and then slowly decrease their rates. Therefore, it is important to remain vigilant even when you think you have found the best cash ISA interest rate.
2) Look in the right places
There are plenty of places where you can help find the best cash ISA that little bit easier. For example, many newspapers and finance related websites will provide some information on this. Likewise, there has been a recent influx of price comparison websites that can also help.
3) Transfer your ISA at the right time
As previously touched upon, sometimes banks fail to keep an attractive interest rates on a cash ISA. Therefore it makes sense to switch or transfer your ISA to another bank that offers a more desirable rate. The process is usually as simple as asking your desired provider to switch your previous ISA to them. Switching or transferring a cash ISA is better than closing a cash ISA and opening a new one as the latter will eat into your total ISA allowance for the present year.