Quick Links

I want to set up an ISA

I want to transfer my ISA

I want to transfer my PEP

Information

Mini Cash ISAs Guide

Maxi ISA Guide

Investment ISAs Guide

PEPs Guide

ISA FAQs

ISA Transfer Guide

Guide To PEP Transfers

Annual Investment Review

Application Forms

PEP/ISA Transfer

ISA Re-registration

New ISA

Mini Cash ISAs Guide

Everything you need to know about Mini Cash ISAs

What Are Mini Cash ISAs

Mini Cash ISAs are tax-free savings accounts. This means that the interest you make on your Mini Cash ISA doesn’t have to be declared to the Inland Revenue.

Mini Cash ISAs are exactly the same as regular savings accounts except that you get the full rate of interest quoted and tax isn’t deducted.

With Mini Cash ISAs you can invest up to £3,000 each year tax free with a UK building society or bank.

If you have what’s called a “no notice account” you can withdraw money from your ISA whenever you want, but if you have a “notice account” you are required to give notice that you want to take out money, so that you don’t incur a penalty. According to the rules governing Mini Cash ISAs, you can make withdrawals without losing tax relief. However, if you have put £3,000 into your ISA in a tax year, you are not allowed to deposit any more money into it before the next tax year, irrespective of how much you have withdrawn.

ISAs were introduced by the Government in April 1999 in order to replace TESSAs and PEPs.

Different Types Of Mini Cash ISAs

Most banks and building societies offer Mini Cash ISAs. However, as is the case with any financial product, it’s a good idea to compare different accounts to find the best deal.

The features of Mini Cash ISAs vary depending on the bank or building society that you open your account with. For instance some Mini Cash ISAs providers will offer cash cards and others will require a minimum opening deposit.

Mini Cash ISAs should conform to what is called, the government’s CAT Standard. This requires Mini Cash ISA providers to offer:

• Fair charges

• Easy access

• Decent terms

It is advisable to opt for a Mini Cash ISA that has a “Cat Mark” so that you can be sure that you won’t get hit by hidden charges.

What To Watch Out For When Comparing Mini Cash ISAs

• There are often strings attached to promises of high interest rates on Mini Cash ISAs. For example, you might not be able to have a “no notice” account which means that you’d have to pay a penalty if you withdrew your cash without giving the required amount of notice.

• Always read the small print. For instance, the highest interest rate offered on a Mini Cash ISA might only apply to those who deposit £3,000 as a lump sum.

• Be aware of the loyalty bonus when planning your affairs. This is a special rate that is given to those who haven’t withdrawn any money from their Mini Cash ISA during the whole tax year.

• There are some Mini Cash ISA providers who only offer their top interest rates to existing customers.

When To Set Up Mini Cash ISAs

You should ideally set up aMini Cash ISA at the start of a new tax year because interest on Mini Cash ISAs is calculated on an annual basis.

By doing this, you can ensure that you are earning the high rate of return for as long as possible before the interest is calculated and added to your savings. By investing halfway through the year you are effectively halving your real rate of return.

Restrictions On Mini Cash ISAs

• Mini Cash ISAs cannot be held as joint accounts or on behalf of other individuals.

• You have to be at least 16 years old to open aMini Cash ISAs.

• You must be a resident of the UK to open a Mini Cash ISA.

Advantages Of Mini Cash ISAs

• Mini Cash ISAs are exempt from capital gains and income tax.

• Mini Cash ISAs allow your savings to grow in a tax efficient way.

Mini Cash ISAs allow you to deposit a lump sum or to make small ongoing payments up to the value of £3,000 in each tax year.

Call me back

Request a call by filling out the form below. All fields are required

ISAs and PEPs | ISA Transfer | ISAs | Mini Cash ISAs | Maxi ISA | Investment ISAs | PEPs | PEP Transfer | ISA FAQs | Contact Us | About Us | Resources | Site Map |

Copyright © 2005 Lawrence Clarke Limited (Pavilion 2, Little Park Farm Road, Segensworth, West, Fareham, Hampshire, PO15 5TD) an appointed representative of The Burns-Anderson Independent Network PLC, 27 Great George Street, Bristol BS1 5QT, which is authorised and regulated by the Financial Services Authority.

The Burns-Anderson Independent Network is entered on the FSA register (www.fsa.gov.uk/register) under reference 126191