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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 £3,600 to receive interest tax free. You can either let the interest accumulate or receive it each year.

Who can invest Anyone 16. Joint accounts not allowed.

How worthwhile Good value for taxpayers, especially higher rate taxpayers. Boosts your interest rate but as rates are so low, not by much.

Minimum £1, £10, £100, £1,000 or £3,600. 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 £3,600 a year (previously £3,000). If you have a CashISA, you can now invest the balance of your ISA allowance (another £3,600) in a have a Stocks & Shares ISA in the same tax year.

Suitable Lump sums, regular savings.

Money back Depends on the company. If you have a CAT Standard Mini Cash ISA there is a maximum of 7 days notice. Otherwise 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 £35,000 since 1 October 2007 for each investor in each UK licensed bank or building society under the investors compensation scheme.

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 Best rates at : Click here for rates and phone numbers for Cash ISAs.

Other Bank and Building Society Accounts

Last updated 14 April 2008.