press release

Press Release - 23/03/05

MONEYNET WARNS AGAINST CASH ISAs SEDUCING SAVERS WITH SHORT TERM ATTRACTIVE RATES

AS the end of the current tax year approaches, Moneynet.co.uk today publishes its pick of the cash Isas - and some of the worst - and warns savers not to be drawn into products with higher rates that are only available for restricted periods.

"To get the maximum, tax free benefits from a cash Isa savers should really be looking for a product offering a good long term rate," said Moneynet chief executive Richard Brown.

"First Direct, for example, is currently the clear market leader, paying 6.25 per cent interest - but this is only available until October: the rate then drops considerably," said Brown.

"The mini cash Isa is an excellent savings vehicle for those with up to £3,000 a year to put away. But there is a wide disparity in rates out there and some pay little better than standard notice accounts," he added.

Savers took out 8.8 million cash Isas in the last financial year (2003/04), investing a total of £19.4 billion, with an average investment of £2,190 (source: Inland Revenue).

CASH ISA's - BEST & WORST PRODUCTS

THREE OF THE BEST

COMPANY	NAME	NOTICE/TERM	MIN/MAX	GROSS RATE
Halifax	Fixed cash ISA	Fixed 5 years - 30 days notice and 180 days penalty on account closure during term	£3,000	5.70%
Alliance & Leicester	Mini Cash ISA	None- Instant Access	£1 - £3,000	5.40%
Abbey	Postal ISA	None- Instant Access	£1 - £3,000	5.35%

THREE OF THE WORST

COMPANY	NAME	NOTICE/TERM	MIN/MAX	GROSS RATE
First Trust Bank	Mini Cash ISA	None- Instant Access	£1 - £499	0.85%
Barnsley Bldg Society	Mini Cash ISA	None- Instant Access	£1 - £499	1.35%
Yorkshire Bank	Mini Cash ISA	None- Instant Access	£1 - £999	3.30%

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005