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you and your 2009 cash isa

It’s ISA time again, and this year if you are looking for a good deal, that is a good ISA interest rate, then it seems the banks are the best place to put your money in 2009.

As interest rates have taken a nose dive in the last 6 months it is difficult to get a good tax free cash ISA rate, but it is still worth putting your money into a Cash ISA as the interest is tax free.

So whether you are transferring your Cash ISA or beginning a new one, take a careful look at the interest rate, and see if you are getting a fixed rate (in case interest rates fall again) or you are getting a variable rate, which may change in the next year or so.

In 2009 you can put up to £3,600 a year into a Cash ISA, you can either put this into an ISA as a lump sum or drip feed the ISA and put in as much as you want each month, although it would be best if you put £300 a month into it, as then you will have put in the full £3,600 by the end of the 12 month period.

Check your Current Cash ISA Interest Rate

One important thing to do at the moment is to check your current Cash ISA provider’s interest rate, as the interest rate on your account may be as low as 0.1%. A lot of providers have dropped their rates lately and there are better Cash ISA rates out on the market.

If it’s low and there are better rates available, then you will need to transfer your Cash ISA, but remember at the busy times of the year, e.g. April, the transfer can take several weeks between different providers.

It can be almost instant if you transfer your ISA to another Cash ISA account with your current provider, so have a look at your current Cash ISA provider’s rates before shopping elsewhere.

Where to go for Good Cash ISA Rates

As of April 2009, Barclays and Natwest have some good interest rates, but you cannot transfer your current ISA, you will need to start a new ISA with them.

If you have over £30,000 in your Cash ISA then take a look at Lloyds TSB who are providing a good fixed interest rate.

If you want to transfer your Cash ISA, then have a look at Halifax, Abbey, Alliance & Leicester or ING Direct for some top Cash ISA rates.

Related Sites of Interest

Capital One Savings
ICICI HiSave Account
FirstSave Bond
FirstSave Notice Account
Alliance and Leicester Online Saver