If you’re looking for the best rate on your cash ISA, beware the banks and building societies offering ISAs with headline rates of interest but include a temporary bonus.
These bonuses often make the ISA look very attractive initially, but may only last for a few months, after which time the interest rate will probably revert to a less competitive rate. There are plenty of ISAs available that pay a decent rate all year round, so it’s worth shopping around, and always check the detail before signing up.
Another important thing to look out for is the amount of notice you need to give in order to withdraw your money, and whether there are any charges for withdrawals, as some banks and building societies also levy charges for early withdrawal.