When To Apply For a 2008-2009 Mini Cash ISA
Written on March 21st, 2008
I notice a lot of people are finding this website when searching for things like “when to apply for a 2008-2009 ISA”.
You can apply for a 2008-2009 tax year ISA from Saturday 5th April 2008 onwards.
Just to recap, you should use a handy price comparison site to find the best deal for you, but just in case you didn’t read my other post, I will summarise the best offers in the following table -
| Institution | Rate (%AER) | Bonus? (inclusive) | Yield frequency | Withdrawal Penalty? |
|---|---|---|---|---|
| Barclays “Tax Haven” ISA | 6.50% | Yes - 1% | Monthly | No |
| Alliance and Leicester “Direct ISA“ | 6.25% | Yes - 1% | Yearly | No |
| Abbey National “Direct ISA” | 6.25% | Yes - 1% | Yearly | No |
| Egg | 6.05% | No | Yearly | No |
| First Direct | 6.00% | No | Yearly | No |
All offers have a minimum opening balance of £1.
What does ‘Bonus’ mean?
This means that after a year (or sometimes on the start of the next calendar year - see the institution’s respective website) the rate will drop by the bonus percentage amount. I.e., the Alliance and Leicester rate will drop to 5.25% AER from 6.25%.
What about Yield Frequency?
This is how often interest is paid on your balance.
Withdrawal Penalty?
None of these offers have withdrawal penalties. A withdrawal penalty often comes in the form of no interest paid for any month that you make a withdrawal during.
Just another thing - if you’ve got savings available that are not currently in an ISA, you have just a week or so left before the deadline. We are still currently in the 2007-2008 tax year, so don’t forget if you haven’t used up your ISA allowance this year, there is still time! Remember - savings that are not in an ISA have interest taxed at 20%, so why would you leave them outside of an ISA?!
