Disadvantages of ISA

We all know best the benefits that a person can enrich from an individual savings account. But the ever increasing and decreasing cash ISA rates makes it quite scary for an individual. Recently Barclays reduced the interest rates to only 0.1% of what it was before around .31%. There are numerous similar things which make it a little disadvantageous for an individual. It is important for you to be aware of both the sides of the coin. Complete knowledge in this regard will definitely help you in saving and investing intelligently. The following are the disadvantages of an individual savings account:

1. The money which a person is saving in an ISA is not very easily accessible.
2. The maximum and minimum investment amount limits that are laid make it quite rigid.
3. The fluctuating cost penalties when a person breaks some rule during the investment period. Whenever a person withdraws money during the investment period, he has to undergo a series of cost penalties.
4. Since the rules vary from bank to bank and institutions to institutions therefore some terms and conditions might me very complicated and not acceptable on personal grounds.

After going through this you might have understood that apart from cash ISA rates there are some more negative points to this scheme.