What's the CAT standard?

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When you look into buying an Isa, you will at some point come across something called a 'CAT standard'. What is it?

CAT standards are minimum-standard guidelines set by the government to establish which Isas offer a reasonable deal and are investor-friendly. CAT is short for Charges, Access, Terms - as in fair charges, easy access and reasonable terms.

Companies that offer Isas can choose to use these standards to assure customers that they are buying a quality financial product, and that any terms will not change within the investment period.

Not all Isas comply with the CAT standards but that doesn't necessarily mean that they are disreputable firms. It may just mean that they offer a type of saving or investment that will not interest every person.

The CAT standard does not mean:

• the government guarantees the Isa;
• the government recommends or endorses the Isa;
• the Isa is necessarily suitable for you;
• you are guaranteed against the risk that share values can fall as well as rise - the value of your investment could fall below the amount you originally put in.