Moneygate

Check for best ISA deal

Every adult has an annual tax-free savings allowance if they open an ISA but choosing the right product can be daunting, say Moneygate.

For example, if you need to access your money than you need to consider a cash ISA or if the savings can be left for a number of months or years then a fixed term ISA could be an option.

Some providers have minimum and maximum deposit levels while other ISAs are affected by how a person deposits money.  Many savers opt for lump sum deposits while others put in regular small amounts.

Annabel Green of IFA Moneygate said: “Many ISA providers offer a much higher rate of return if savers opt for a lump sum deposit.  Also bear in mind that some ISA providers do not allow a saver to open a new account with money transferred from an existing ISA. It is really important to check if there are any penalty clauses for making withdrawals and to check when interest rates change.”

Making sure you get the best rate of interest possible is obviously very important in maximising your tax free returns. You have the option of choosing an account with an interest rate that is variable (and liable to fall at the provider's discretion), one that is inflated by an introductory bonus for a number of months, or one that stays fixed for a period of time.

It is always best to take out independent advice before taking an ISA out. For the latest advice go to www.moneygate.co.uk