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MSE News: Does loyalty pay when it comes to cash ISAs?

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Former_MSE_Helen
Former_MSE_Helen Posts: 2,382 Forumite
in ISAs & tax-free savings
Many providers have upped cash ISA rates for savers who also have a current account with them. But does loyalty pay?...
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Does loyalty pay when it comes to cash ISAs?

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  • jimjames
    jimjames Posts: 18,678 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Not really when the current account pays better than the ISA it's linked to!
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Oblivion
    Oblivion Posts: 20,248 Forumite
    Part of the Furniture 10,000 Posts Photogenic
    Quite honestly, chasing the odd 0.1% extra interest here and there has become a total bore. I'll be sticking our 2015/16 allocation into our NS&I Cash ISAs as usual. I yearn for a return to the days of 8% interest accounts ... but maybe just a dream in what is left of my lifetime. :(
    ... Dave
    Happily retired and enjoying my 14th year of leisure
    I am cleverly disguised as a responsible adult.
    Bring me sunshine in your smile
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    With the new budget, it will be 3% TAX FREE in a Santander 123.


    1.6% ISA? What a joke.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Pincher wrote: »
    With the new budget, it will be 3% TAX FREE in a Santander 123.


    1.6% ISA? What a joke.

    If you are referring to the £1,000 tax free interest per annum: this is not planned to start until April 6 2016, and is subject to any emergency budget we may suffer in May.
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    edited 30 March 2015 at 5:22PM
    Archi_Bald wrote: »
    If you are referring to the £1,000 tax free interest per annum: this is not planned to start until April 6 2016, and is subject to any emergency budget we may suffer in May.


    2016! Counting my pennies one year early.


    3% taxable is still better than 1.6% tax free, though.


    I do have a HSBC Premier ISA, and guess what, I had to use the money from the Santander for a big bill, because you can't put it back with an ISA. I know, the rules are changing, but not yet.
  • escapee
    escapee Posts: 320 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Archi_Bald wrote: »
    If you are referring to the £1,000 tax free interest per annum: this is not planned to start until April 6 2016.

    Unless your current annual income (including interest on savings) falls below £15,500 - if so you can already claim a tax free allowance on savings!
  • poppy10_2
    poppy10_2 Posts: 6,588 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I have a question about the HSBC ISA. To open it you need to have a HSBC Premier current account, which requires you to have £50k held with HSBC.

    I have £40k worth of ISAs with other providers and can top this up to over £50k after April. I want to then transfer this to a HSBC ISA, which should qualify me for a Premier Account, but how can I open the ISA without having the Premier Account first? Or how can I open the Premier Account before transferring my ISA first? It all seems very circular
    poppy10
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    poppy10 wrote: »
    Or how can I open the Premier Account before transferring my ISA first? It all seems very circular



    Don't worry about it. They know it takes time transferring assets.


    If you don't keep £50k worth of assets with HSBC for an extended period of time, they will tell you to do something to make it up. If you don't, they will downgrade the account into a regular current account.
  • standbythelads
    standbythelads Posts: 2 Newbie
    Sixth Anniversary First Post Combo Breaker
    Surprised United Trust Bank in London has not been mentioned. 5 year fixed cash isa bond pays 2.75% on amounts £5k or above but only accepts transfers in. £85k cover via FSCS and interest paid annually to nominate bank. Best one I found for people with maturing isas.
  • redmalc
    redmalc Posts: 1,435 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Pincher, I disagree with your comments about HSBC downgrading your account,I am a Premier Customer and only when we joined which was 8 years ago did we fulfill the criteria.
    I have no accounts with them other than the current account and they have kept our Premier Status,i offered to move my account away when we transferred 150K from them 5 years ago to a different Bank.
    I actually went in a few months ago to enquire about my status and was told its all ok,one day you will return,i responded when you pay better rates,i will.
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