Mini Cash ISA - About Mini Cash ISA's

ISA stands for Individual Savings Account and there are two types of Individual Savings Accounts, a mini ISA and a maxi isa. This article explains about mini ISA's and in particular mini cash ISA's. A mini ISA can contains cash, stock and shares or insurance. A mini cash ISA can only contain cash and the main benefit of putting your money in a cash ISA is that it is tax free for everyone no matter what your tax status is. There is a limit to the amount of money you can put into a cash ISA and that is currently £3000 a year. You can add up to £3000 a year to your existing mini cash ISA or open a new one with a different cash ISA provider (in order to take advantage of a better rate for instance) but your limit regardless of how many cash ISA's you have is to deposit £3000 a year in total.

You have to be 16 years of age to open a mini cash ISA and they usually give you instant access to withdraw the money with no penalty. However if have already paid in £3000 into your mini cash ISA for the year then you will not be able to deposit the money you withdrew back into the account. Of course you do not have to pay the whole £3000 initially if you do not want to or do not have the funds. Instead you can set up a standing order to make regular payments into your mini cash ISA as a way to build up savings.