www.InvestmentGuide.co.uk

Other Bank and Building Society Accounts

BANK or BUILDING SOCIETY

Cash ISA

(formerly called Mini Cash ISA or TESSA only ISA)

An account with a yearly maximum investment of £5,100 to receive interest tax free. You can either let the interest accumulate or receive it each year.

Who can invest Anyone over age 16. Joint accounts not allowed. There is a Junior version available for children born before 1 September 2002 or on or after 3 January 2011.

How worthwhile Better for taxpayers, especially higher rate taxpayers. Boosts your interest rate and ISA's can offer better rates than other types of deposits.

Minimum Varies £1, £10, £100, £1,000 or more. You can usually invest what you like, when you like, subject to the maximums. Some of the best rates are only available if you invest the maximum.

Maximum £5,100 a year since 6 April 2010 . If you have a Cash ISA, you can now invest the balance of your ISA allowance (another £5,100) in a Stocks & Shares ISA in the same tax year.

Suitable Lump sums, regular savings.

Money back Depends on the company. The terms can be like any bank or building society account. You can transfer your ISA to another bank or building society and you won't lose the tax benefits. But you may lose bonuses or interest on early closure or transfer.

Interest Usually variable. Some offer fixed rates for all or part of the term.

Interest paid Usually added to account yearly.

Tax Interest is tax free. It does not have to be included on a tax return.

Fees to pay There may be charges, e.g. £20, £25, £50 if you want to move the account to another bank or building society, should their interest rate become poor value. With others you can avoid the charge by giving 7, 28 or 90 days notice.

Passbook Statements usually sent.

Children From age 16.

Risk 100% compensation scheme on the first £85,000 for each investor in each licensed bank or building society under the investors compensation scheme if the institution goes bust.

How to invest Look at surveys in the press. You need your National Insurance or State Pension number, if you have one, for the application form.

Where from Adult: Most banks and Building Societies- see Best Buy tables on line and in the Saturday newspapers. Junior: Natiownide, Skipton.

Other Bank and Building Society Accounts

Last updated 7 November 2011.