With so many ISA providers and products on offer the government has attempted to introduce a recognised standard - the CAT mark.
The initials refer to Charges, Access and Terms. In other words the CAT mark is meant to indicate a fairly price ISA, with reasonable terms and conditions that is easy to access.
But you need to remember the following things:
CAT marks are a voluntary standard so not all ISAs have a CAT marks. For ISAs without a CAT mark, always remember to check for hidden charges.
Just because an ISA has a CAT mark it does not mean that it is guaranteed to produce a strong performance, or that the government endorses the product.
A CAT ISA restricts the type of investments you can make as outlined below.
A CAT ISA has to meet the following rules:
Charges
Cash ISA - no charges
Stocks and Shares ISA - a maximum of 1% of net asset value a year in charges
Insurance ISA - a maximum of 3% a year in charges
Assess
You must be able to get access to your money within seven working days
Terms
For Cash ISA's interest rates must be a maximum of 2% below general bank base rates.
CAT marked Stocks and Shares ISAs have to have at least 50% invested in the ISA-qualifying shares and securities of the European stock market. This restricts the amount of investments that can be make in global shares.
For Stocks and Shares ISAs there is a minimum savings level of no more than £50 per month or £500 per year.
For Insurance ISAs there is a minimum premium of no more than £25 per month or £250 per year.
Individual Savings Accounts (ISAs)
CAT Marks 