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There are many good rates around at the moment -

Britannia BS offering 5% interest (fixed rate until April next year) (www.britannia.co.uk)
Portman BS offering 5.25% (includes an introductory bonus) (www.portman.co.uk)
Alliance & Leicester offering 5.20% (includes an introductory bonus) (www.alliance-leicester.co.uk)

If at a later date your chosen investment becomes uncompetitive, then of course you transfer to another ISA. The important word here is 'transfer' - the ISA must be transferred between the banks or building societies on instructions from you. If you withdraw the money in order to invest it elsewhere, then you will lose the tax-free element. When an ISA is withdrawn you cannot reinvest it back into the ISA.

So, don't be one of the 75% who fail to take advantage of the government's gift to you. Also, if you want to make a monetary gift to an offspring who is over 18, then why not place it in an ISA
(asking them to sign the application form, of course) and then the gift will accrue tax-free interest? Doesn't it make you feel good, when money earns money and you haven't actually got to work for it? And as an added bonus, you're not one of the 75% April Fools!







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