Among them is the Post Office's new
Premier Cash ISA which offers easy access to your cash and a generous rate of interest. Here, we take a look at the account in more detail to see if it could be the right ISA for you... .
What's the deal?
This ISA pays a competitive 3.01% tax-free annual interest and can be opened with a minimum investment of £100.
The rate includes a 1.26% bonus for the first 18 months, so you will need to move your money at the end of this period if more competitive rates are available elsewhere.
This account accepts cash ISA transfers from other providers, so you can pay in from existing ISAs as well as using this year's £5,640 annual allowance. The ISA also comes with the Post Office's 'Savings Promise' that until at least January 1, 2013, if the Bank of England base rate changes, the rate on your account will change by the same percentage within 30 days.
You must be at least 16 years old and a UK resident to open this account.
Any catches?
Only two free withdrawals are permitted each tax year, so this account won't suit those who need regular access to their cash. If you need to make any more withdrawals than this, you will have to transfer to another provider or close the account. Remember if you do close your ISA, your savings will lose their tax-free status.
Bear in mind too, that if you pay in £5,640 and then make a withdrawal, you can't pay anything into the ISA until the next tax year.
Although the bonus on this account lasts longer than most other bonuses, you will still need to move your money once it disappears.
Verdict
While the rate of 3.01% is not top of the tables in its own right, the 1.26% fixed bonus lasts for a longer-than-average 18 months and the minimum investment is an achievable £100, making it a good option for savers with smaller sums to invest.
The fact that the Post Office accepts transfers from other ISAs also makes the account well worth considering.
In comparison, the current market leading easy access cash ISA, Cheshire Building Society's Cash ISA (Issue 2) pays 3.50% annual interest tax-free, but can only be opened with a minimum investment of £1,000. It does not accept transfers from existing ISAs. The rate on the Cheshire account includes a steep 2.50% bonus which is payable until the end of October next year.
Santander's Direct ISA Issue 9, which also pays a higher interest rate than the Post Office ISA of 3.30%, does accepts transfers, but requires a much higher minimum investment of £2,500. The rate on this account includes a hefty 2.80% bonus which is only payable for the first 12 months.
Top tip
If you are considering transferring money held in existing ISAs into the Post Office ISA, you mustn't withdraw the cash to pay it in, otherwise your savings will lose their tax-free status.
Instead, you must request a transfer form from your new provider who should then arrange the switch on your behalf. The 'target time' for completing a transfer is 15 days and you shouldn't lose out on any interest during the transfer.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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