New ISA for deposit

bluesnice

I've been looking at the advice given here and have decided to get myself a ISA.

I'm saving for a house and hope to buy in a year to two years time. I'd like to put some of my savings (the full £3000) for the deposit into an ISA and was wondering which ISA is best for short term use. I think, based on what I've read that a CAT standard would be best, due to no fees when I withdraw the money for the house purchase. Am I correct?? Also are CAT standard ISAs a lower interest rate?

I've seen a smile one for 5%. Do you think this is ok for the time period I want? How do I find out which ISA are CAT standard and their rate. It never seems clear on their bumpf or websites if they are CAT standard.


thanks.

leaphaze

Hi Blue

I suspect that any ISA that doesn't mention CAT, is not CAT. Basically, for a Cash ISA, you need to check for transfer-in and transfer-out fees. You infer you don't already have a Cash ISA, so transfer-in fees shouldn't worry you anyway (there are no fees for paying-in). You say you'll be withdrawing the money in 1 or 2 years. Although you're probably not thinking about transferring to another ISA, it would keep your options open if you did go for one with no transfer-out fees.

I've just applied for a First Direct ISA (6.5% until Oct 05); I'll be transferring-out in October.

Also came across the following website http://www.fsa.gov.uk/tables
Go to tables, click select Saving Accounts then click the Tax Free option. There are other comparative websites and, of course, lots of advice/opinions here.

dunstonh

CAT standard is about to be withdrawn anyway so I wouldnt worry about that.

isasmurf

but will be replaced by 'Stakeholder' terms, which are more or less the same as CAT standard.