FundsNetwork launches ISA Cash Park for nervous investors

Investors will be able to make full use of their £7,000 ISA allowance by temporarily placing it in the ISA Cash Park before the 5 April deadline, as long as they intend to invest the money into equity or bond funds in the future. The ISA Cash Park will pay interest monthly at a gross annual rate of 4.85% (AER 4.96%) and is available in mid-March. The gross rate is pegged at 0.4% below the Bank of England base rate. There is an HM Revenue & Customs charge on interest at source at a flat rate of 20%, so the interest is paid net and tax-payers face no additional tax charge. Money will ...