Regular Savings Cash ISA’s

There are several different types of ISA’s to choose from. But, the best cash ISA for you will depend mainly on your financial circumstances. If you don’t have the full amount to invest initially, you might want to think about opening a regular savings ISA.

With this type of cash ISA you don’t have to have the full amount all at once. Instead, you sign an agreement that you will deposit a set amount each month. The agreement is usually arranged for 12 monthly payments. And, this type of ISA generally offers higher rates of interest.

This type of ISA is a great alternative for anyone that wants to open an ISA but doesn’t have a large initial deposit. But, it also has some disadvantages. If you miss a monthly deposit, or have to withdraw any money from the account, the interest rate will usually drop dramatically.

Another disadvantage is that most providers will also charge you a fee if you miss any of the payments. Because of the fees and the reduction in interest for missed payments and withdrawals, this type of ISA is a better choice for anyone that can meet all the payments and won’t need to use any of the money.