ISA guides

Financial services company Bradford & Bingley has announced the launch of a new one-year mini cash ISA.

The interest rate for the ISA, which is designed with those people who have yet to use up their ISA allowance for the tax year 2006/7 in mind, is to be fixed at 5.9 per cent per annum AER (annual equivalent rate).

The limited edition offer is available until April 5th - the end of the current tax year - or until the account’s quota has been taken up. (more…)

M&G offers two types of ISA: the mini ISA and the maxi ISA. Up to £3,000 cash can be invested in a min ISA, or £4,000 in stocks and shares. A combination of cash and stocks and shares - or just stocks and shares - can be invested in a maxi ISA, up to the value of £7,000. However, only £3,000 of that £7,000 can be invested in cash.

There are seven funds to choose from should a saver decide to invest in stocks and shares, and these are divided into three categories: funds to be invested in for income; funds which promise growth; and funds for investors looking to diversify. No initial charge is payable on any M&G ISA account if a lump sum is invested, while no exit fees are payable if the money is invested for five years or more. (more…)

Sales of individual savings accounts (ISA’s) fell by 71 per cent during January, prompting concerns that higher interest rates are beginning to affect investments.

Figures released by the Investment Management Association (IMA) show ISA sales of £31.1 million for January, down from £107.1 million the previous month. (more…)

The Nationwide ISA is the most attractive offer on the market, according to finance comparison site moneyextra.com

Robin Amlot, moneyextra’s senior editor, believes that the Nationwide package offers consumers the best chance to earn high interest on the money invested in their cash mini ISA’s. (more…)

There are currently six ISA’s available from the Yorkshire Building Society (YBS). They are: the 30-day notice ISA; the e-ISA; the fixed rate anniversary ISA; ISA plus; rollover TESSA-only ISA; and the variable rate TESSA-only ISA. (more…)

Disappointing ISA sales have been put down to increased interest rates.

Jason Hollands, head of communications for investment firm F&C, believes that three interest rate rises since August have constricted demand for ISA’s as many households are now concentrating on paying their mortgage, rather than investing in savings schemes. (more…)

Kent Reliance currently offers two types of ISA’s: the direct variable rate mini cash ISA; and the variable rate mini cash ISA with passbook. Both ISA’s are mini cash ISA’s - stocks and shares mini ISA’s and maxi ISA’s are not available through Kent Reliance. It is also possible to transfer existing mini cash ISA’s and Tessa-only ISA’s over to the direct variable rate mini cash ISA offered by Kent Reliance. Up to £3,000 can be invested in a mini cash ISA each tax year. The deadline for the current financial year is April 5th. (more…)

Following last week’s downturn, investment experts are predicting further disruption to the ISA market as the London stock market, in line with markets across the globe, continues to dip steadily.

While UK savers put £2.5 billion into ISA’s last year, it is believed that many will now begin to put their spare money towards paying off debts rather than invest it in an ISA, given the precariousness of the stock market. (more…)

The regulations governing the transfer of stock into an ISA need to be revised in order to ensure they benefit investors, a financial services group has declared.

Under the current rules, Alliance Trust Savings claims that ISA investors are having to pay out almost three per cent stock transfer costs, amounting to costs of more than £200 for some customers. (more…)

Individual Savings Account (ISA) holders still prefer to hold their assets in cash despite the impressive performance of equity over recent years, market observers have said.

According to Fidelity International, equities have been outperforming cash by as much as 39 per cent since 1999, suggesting that ISA investors should opt for equity when choosing how to invest this year’s allowance. (more…)