ISA Top Tips

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.....if you are one of the ones who is planning on saving more than last year then where should you begin?

A great way to start saving is a cash ISA - and the reason for this is that a cash ISA is tax-free. At any one time you can keep up to £3,600 in a cash ISA each financial year, and from 5 April 2010, once you reach the age of 50 and over you’ll then be able to have the annual limit of £5,100 and higher.

For those who’ve already got a cash ISA but who want to transfer their funds to one paying a better rate of interest, it’s important that you make sure you’ve checked to see whether this will be possible. In some cases, there are cash ISAs that won't allow you to transfer funds in from an existing cash ISA account, so this is something you’ll need to check before you apply for one - however, this will only concern those looking to transfer money between two cash ISAs; those who just want to start up a new one won’t have to worry about this at all.

One easy way of checking which account offers the best rates for you is by visiting a comparison site such as Here you’ll find a variety of different cash ISA accounts so you’re sure to find one that’s ideal for you and your financial needs.

Something else to bear in mind is that if you find that you need to transfer money across from an existing cash ISA, this doesn't mean you'll be stuck with a lower interest rate than if you’d opened a brand new cash ISA. In fact, you may be pleasantly surprised to find out that your cash ISA may allow transfer, meaning that you won’t need to keep your money in a few different ISAs.

The only thing that you’ll need to remember is that in order to protect your tax-free status, you should never withdraw cash from an ISA to invest in another account. Instead of doing this, you can just ask your new provider for a form that will allow you to transfer the money directly into your new ISA account.

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