Last chance to get a 2011/12 Cash ISA

by Ed Bowsher on 05 April 2012  |  16 comments
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It's your last day to use this year's ISA allowance - here are the top Cash ISAs for this tax year that are still available.

The ISA deadline is hours away but you can still put away up to £5,340 today. If you're looking for a top-paying Cash ISA for the current tax year, we've done the legwork for you and rounded them all up on one page. Let’s start by looking at the top instant access Cash ISAs.

Instant access ISAs

The top instant access ISA was the Cheshire Building Society's Direct Cash ISA, which pays a cracking 3.5% interest rate. This has now been closed for this tax year, although you can now open it for the next tax year, which starts on Friday. This highlights the importance of not leaving it until the last minute to open your ISA, as this is the second market-leading product to be withdrawn before the deadline.

We'll be covering the top ISAs for the next tax year in a separate article later this week.

However, if you do want to open an ISA this tax year, take a look at Santander’s top instant access ISA – the Direct ISA (Issue 9). The interest rate is 3.3% and the minimum deposit is £2,500. But be aware that online applications for this ISA have now closed, and you can only open it by visiting a branch.

If you can only deposit a small amount and don't have time to visit a branch, take a look at the instant access ISAs from the Skipton or Principality Building Societies. 

Top instant access Cash ISAs

You’ll see that all of the accounts have bonuses either for a year or 18 months. I’ve got no problem with bonuses. They mean that your interest rate can’t fall below a certain level for the duration of the bonus. So with the Skipton account, for example, your interest rate can’t fall below 2% until next April.

Just remember that the interest rate on your account will probably crash once the bonus expires.

That said, there is one bonus I don’t like – Santander’s. It’s a ‘variable rate’ bonus which means you don’t have any guarantee at all. Stupid!

Short-term ISAs

Moving onto short-term fixed rate ISAs, the top accounts come from BM Savings, Santander and Cheshire Building Society. 

If you can lock your money away for a year, then Santander is No.1 with its 1 Year Fixed Rate ISA. This account pays a fixed rate of 3.5%.

At two years, the stand-out account is the BM Savings 2 Year Fixed Rate ISA which pays 4.05%.

The runner-up is the Santander 2 Year Fixed Rate Major. The basic interest rate is 4%, but Santander is also offering a little extra on top.

If Rory McIlroy, the Northern Irish wonderboy golfer, wins a golf ‘Major’ during the next two years, you’ll get a 0.1% bonus.*

True, 0.1% isn’t going to make a massive difference to your finances, but heck, every penny counts, and you may also have a bit of fun too. What’s more, there’s a decent chance that McIlroy will deliver as he’s number one in the world rankings and won the US Open last year.

Top short-term fixed-rate ISAs

Long-term ISAs

Finally, let’s look at the best long-term fixed rate ISAs.

When you compare their rates with what you can get at one or two years, I think they look a bit weak. But here are the best ones anyway:

Top long-term fixed rate ISAs

So there you have it. All of the UK’s best Cash ISAs in one article. The choice is yours!

*The eligible tournaments are: The Masters in April 2012, 2013 and 2014; US Open in June 2012 and 2013, the Open Championships in July 2012 and 2013, US PGA championships in August 2012 and 2013. Accounts opened after 5 April 2012 won’t be eligible for the bonus if McIlroy wins The Masters in 2012.

This is a classic lovemoney article that is regularly updated.

More on ISAs and savings:
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The UK's best Stocks and Shares ISAs
The one-year savings bond that offers a 5% return!
The UK's worst savings accounts