ISAs

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10. Cash ISAs

Remember that one of the options open to you when you take out either a maxi or mini ISA is to put cash up to a maximum of £3,600 in it (£5,100 from October 09 for over-50s, and April 2010 for everyone else).

But 'cash' in this context doesn't mean your money has to sit in a bank account. In fact you have three choices:

1. Bank or building society account
   All the High Street banks have special Cash ISA accounts. If you want to keep your ISA money in the bank, you have to open one of these special accounts. You can't just leave it in an existing deposit account and tell the Revenue "That's my ISA".
2. Money market funds
   Money market funds carry at least 95% of their assets in 'money market instruments' like cash, deposits, certificates of deposit, floating notes and short term debt instruments. The aim is to generate risk-free income.
3. National Savings and Investments
   A dedicated Cash mini ISA is available. Information about this product is available from Post Offices.

1. What is an ISA? 2. Who can take out an ISA? 3. ISA investments: the 'Components' 4. The different kinds of ISA: Maxi, Mini and Tessa-only 5. How many ISAs can you have? 6. How much can you put in an ISA? 7. Maxi or Mini? 8. Tax rules on ISAs 9. Practical significance of ISA tax rules 10. Cash ISAs 11. Stocks & Shares ISAs 12. Choosing an ISA fund 13. Buying an ISA 14. Charges and CAT standards 15. Where to find an IFA 16. Switching ISA investments 17. Transferring shares into an ISA 18. Withdrawing funds from an ISA 19. Conclusion

• Fear and Loathing in My Bank Account