Choosing a cash ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
4 replies 818 views
bikelesschickbikelesschick Forumite
399 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I've had ISAs in the past and choosing them was pretty easy, I just picked the one that offered the best AER! This coincided with what this site recommended anyway so pretty easy to do.

But I've just gone to a comparison website and found other ISAs, one with Northern Rock with a better rate (but I'm not sure I'd want to have an account with them after previous troubles) and one with Santander.

So my question is, how do you choose an ISA these days?? I've only used one comparison website and I'm afraid that if I start doing more comparisons my choices will be endless and I'll just end up spending too much time on something that, in theory, should be quite simple (or not?).

Any help will be greatly appreciated.
:jBaby girl born 3rd October 2012:j

Replies

  • LokoloLokolo Forumite
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    Why aren't you choosing the one with the best AER now? :/

    The ISA that you need will depend on your circumstances.
  • Lokolo wrote: »
    Why aren't you choosing the one with the best AER now? :/

    The ISA that you need will depend on your circumstances.

    Sorry, I wasn't very clear. I'll try to explaing better... I'm trying to find out what the cash ISA with the highest AER is but I'm just getting really confused.

    This website recommends Northern Rock or AA at 3.05%. Then I went to a comparison site and found the following:

    Northern Rock 3.80%

    and some savings accounts with higher AER rates, which is confusing me.

    I only have about £800 to save and it's possible I'll need it Mar/Apr next year so this could potentially be a very short term investment.

    It just feels to me that there isn't really one best choice as there was a few years back (at least that was my experience), but I'll have to keep looking around... is this right?
    :jBaby girl born 3rd October 2012:j
  • LokoloLokolo Forumite
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    Part of the Furniture 10,000 Posts
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    Look at the individual products. The 3.8% ISA is a 3 year fixed.

    If you can only keep the money for the next 8 months then an instant access account would be best, so the AA at 3.05% is fine.
  • Oh, I hadn't seen that. Thank you!!!
    :jBaby girl born 3rd October 2012:j
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