The rates offered by ISA providers in UK for 2011 and 2012 greatly depend upon the minimum investment and account type. Typical investments for above mentioned Isa offers are £1, £100, £500, £3000 and £2500.
The policies for withdrawal, deposits and transfer of ISA set by UK government have now been designed in accordance with efficient time management. For instance, the transfer of ISA should not exceed 15 days. If it exceeds, then the Isa service provider is bound to pay a percentage of interest to the customer.
The selection of best ISA for 2011 and 2012 can be determined on the basis of AER, minimum deposit, transfer and withdrawal arrangements, online support and consultancy. According to the analysis, Halifax and Lloyd TSB ISA have made their name in the market in terms of the factors discussed. The rates are encouraging and thus attract many people from different ISA service providers as well.
The major factor that helps in interpreting the best ISA rates for 2011 and 2012 is Annual Equivalent Rates (AER). Halifax ISA offers one of the highest AER of 3.20% while NatWest offers one of the lowest AER of 2.0%. Birmingham Midshire provides an Annual Equivalent Rate (AER) of 2.90% on a minimum deposit of £1. Northern Rock ISA provides an AER of 2.80% while Lloyd TSB ISA provides an AER of 2.65%. Nationwide ISA provides an AER of 3.10%. The pre-luminary comparison would appreciate Nationwide and Halifax ISA, but an in depth analysis yields different results.
Compare Best Cash ISA rates| Cash ISA rates Comparison
| Account Name | Interest Rate AER | Transfer in | Access | Details |
|---|---|---|---|---|
| Natiowide e-ISA | 3.10% | Yes | Online only | This account can be opened with £1. Interest rate includes a bonus for the first year. |
| Halifax ISA Direct Reward | 3.20% | Yes | Branch, Online, Telephone | The account can be opened from a meagre amount of £1 and this minimum amount has to be in the account for the initial 12 months. The interest rate includes a bonus of 0.2% for holders of Halifax Current Account. |
| Birmingham Midshires ISA | 2.90% | Yes | Post Only | Minimum investment required is £1. Allows unlimited withdrawals without any loss of interest or penalties. Bonus of 1.20% for the 1st 15 months is included in the rate. |
| Northern Rock e-ISA | 2.80% | Yes | Online Only | You can open your account from as little as £1. This ISA do not offer any introductory bonus, however, you will have unrestricted access to your money. |
| Northern Rock Easy ISA | 2.65% | Yes | Post, Branch | Do not offer any bonus. Minimum required investment is £1. |
| Lloyds TSB Cash ISA Saver | 2.65% | Yes | Branch, Telephone, Online | £1 minimum investment required. 1.65% AER bonus included for 18 months. |
| Natwest Cash ISA | 2.00% | Yes | Branch, Post, Online, Telephone | To get this rate, a minimum investment of £50,000 is required. There are different rates for balances below this. |
Fixed cash ISA’s are popular and common among the savers. AA ISA’s savings account provides and interest of 3.50% for two years. The ISA plan for Halifax has different interest rates for different years. With a variable interest rate, Halifax ISA offers 3.65% interest rate for two year plan, 3.70% for three year plan and 4.40% for four year plan. Nationwide ISA offers a rate of 4.05% for three years and 3.25% to 3.40% for 18 months depending upon the minimum initial amount deposited. Lloyd’s TSB ISA offers a rate of 3.60% for 2 year plan starting from 2011 to 2012. Northern rock ISA offers a rate of 3.10% for 1 year plan and 3.655 for 2 year plan. Newcastle ISA offers a rate of 3.00% for 1 year plan. Principality BS ISA offers an interest rate of 4.40% for 5 year plan. The 5 year plan of Northern Rock offers a rate of 4.40%, same as that of Principality BS.
Compare Best Fixed Rate ISAs|Fixed Rate ISA comparison
| Account Name | Duration | Minimum Investment | Rate |
|---|---|---|---|
| Northern Rock 1 year Fixed Rate ISA | 1 year | £500+ | 3.10% |
| Principality BS 1 year Fixed Rate ISA | 1 year | £500+ | 3.10% |
| Newcastle BS 1 year Fixed Rate ISA | 1 year | £500+ | 3.00% |
| Marks& Spencer 1 year Fixed Rate ISA | 1 year | £100+ | 3.00% |
| Nationwide 18 months Fixed Rate ISA | 1,5 years | £25000+ | 3.40% |
| Nationwide 18 months Fixed Rate ISA | 1,5 years | £1+ | 3.25% |
| Santander 2 year Fixed Rate ISA | 2 years | £500+ | 3.70% |
| Halifax 2 year Fixed Rate ISA | 2 years | £500+ | 3.65% |
| Lloyds TSB 2 year Fixed Rate ISA | 2 years | £3000+ | 3.60% |
| AA Savings 2 year Fixed Rate ISA | 2 years | £1+ | 3.50% |
| Northern Rock 2 year Fixed Rate ISA | 2 years | £500+ | 3.40% |
| Halifax 3 year Fixed Rate ISA | 3 years | £500+ | 4.40% |
| Northern Rock 5 year Fixed Rate ISA | 5 years | £500+ | 4.40% |
| Principality 5 year Fixed Rate ISA | 5 years | £500 | 4.40% |
| * As of16/06/2011 |