What is the difference between a direct ISA and a cash mini ISA?
Plugging into IFA Promotion’s network of specialist financial advisers myfinances.co.uk answers your questions.
Fred from North Yorkshire asks:
What is the difference between a mini cash isa and a direct ISA (NS&I).
Chris Wicks, Alexander Beard Group, replies:
There is no difference. The Direct ISA is a mini cash ISA issued by National Savings.
It allows you to invest from £1000 to £3000 in the current tax year. If you invest the minimum you may make additional deposits of at least £250. The current interest rate is 6.05% variable.
The best current rate is offered by the Saffron Building Society at 6.30% gross.
This requires you to serve 30 Days notice of withdrawal. The rate includes a bonus of 0.8% for 6 months. The NS Direct ISA does not contain a bonus and its current rate is as that on offer from Egg.
National Savings are government backed so you can make a working assumption that your money is essentially safe.
Larger banks and building societies, in reality are pretty safe really so it is legitimate to take a view that in either event your money is unlikely to be lost.
If you have an ISA question, got to www.myfinances.co.uk/ask-the-isa-expert
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