The
Mini Cash ISA is a savings account that anyone over the age of sixteen is eligible for. ISA stands for Individual Savings Account.
The tax advantages make the ISA an attractive type of savings account. Interested earned on money held in the mini cash ISA is paid tax-free. But there is a limit to how much you can deposit in any tax year.
The
mini cash ISA tax-free allowance is £3,600 in 2008/9. If you do not use your tax-free allowance in any given year you lose it forever so it is worth taking advantage of it if you are able.
There are different types of mini cash ISA just as there are different types of savings accounts. You can get fixed rate mini cash ISAs which are obviously attractive in times of falling interest rates as well as instant access and notice ISAs which have different advantages and disadvantages.
You can transfer your money from one
mini cash ISA into another whenever you like. But if you have a fixed rate ISA then you may be subject to a charge – normally a month of more of interest.
By law ISA providers have to process your ISA transfer within 30 days and you should receive interest from your existing provider right up until the transfer takes place.
The
mini cash ISA is a great starting point for savers, you have go a long way to beat the returns you get from an ISA because of the 20% boost to the interest you receive over taxed savings accounts.
Don’t waste your mini cash ISA allowance this year!
