Ford Money regular cash ISA Saver @4% on £250/month

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  • eskbanker
    eskbanker Posts: 31,194 Forumite
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    Nourse79 wrote: »
    Hi BGB, just found this Regular Savings Calculator here :

    https://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

    Seems to say that " After saving £250.00 a month for 11 months, you will have £2,804.61 in savings, meaning you've earned £54.61 interest" and "After saving £250.00 a month for 1 year and 0 months, you will have £3,064.61 in savings, meaning you've earned £64.61 interest

    That would be £10 loss. No ?
    No - the scenario being discussed is in between those two options, it's keeping 11 months worth of contributions but for 12 months, so it's only a month's interest on £250 that's being lost, the interest will still be earned on the other 11 £250s during that final month.
  • jimjames
    jimjames Posts: 17,636 Forumite
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    Alternatively decide if a cash ISA is the right place for your money, there are other regular savers paying 5% and current accounts for larger amounts paying slightly less
    Remember the saying: if it looks too good to be true it almost certainly is.
  • soulsaver
    soulsaver Posts: 5,996 Forumite
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    B_G_B wrote: »
    Alternatively, miss the last payment. Loss of interest approx 83p, but simpler option.

    The simpler option - OP appears has the money & appears to be that way inclined - would be to fund the Ford cash Isa now earning 1% pa while paying from it by SO the monthly payments in to the RS ISA, allowing them to contribute the 12th payment without impinging on cash isa options next year, and to earn the 1% tax free until earning the 4% for the final month.

    And ready to take advantage using 2017/18 ISA cash should Ford offer another RS in April. :)
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  • Speculator
    Speculator Posts: 2,225 Forumite
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    edited 13 October 2017 at 8:21PM
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    soulsaver wrote: »
    The simpler option - OP appears has the money & appears to be that way inclined - would be to fund the Ford cash Isa now earning 1% pa while paying from it by SO the monthly payments in to the RS ISA, allowing them to contribute the 12th payment without impinging on cash isa options next year, and to earn the 1% tax free until earning the 4% for the final month.

    And ready to take advantage using 2017/18 ISA cash should Ford offer another RS in April. :)

    Hope Ford will allow £1666 pm for the next one!
  • Nourse79
    Nourse79 Posts: 34 Forumite
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    soulsaver wrote: »
    So note you need to pay that final £250 23.04.18 out of this years ISA - or you'll limit your options for a cash ISA next financial year as well.
    So pay at least £250 into Ford's 1% (IIRC) 2017/18 ISA before April and use that for the final monthly payment.

    Hi Guys, a quick update after emailing Ford Money. Their reply :
    " we cannot allow an early payment into this account. If you plan on funding the account with £250.00 on 23 March 2018 the next payment allowed would be 23 April 2018. The Regular Save Cash ISA is not linked to calendar months but from the initial funding date."
    So, it's look like omitting the last payment in April is my only option and obviously opening near end of this tax year a Ford Money regular ISA with £17 250 to use up the remainder of my ISA allowance (currently with RCI Bank @ 1.30%).

    Thanks for all your advice.:)
  • AirlieBird
    AirlieBird Posts: 1,046 Forumite
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    Nourse79 wrote: »
    So, it's look like omitting the last payment in April is my only option and obviously opening near end of this tax year a Ford Money regular ISA with £17 250 to use up the remainder of my ISA allowance

    No it's not. Your other options are
    1. On 23 April transfer £250 from the 17250 you put into Ford's standard ISA this tax year or
    2. Deposit £250 to the Regular Saver ISA from non ISA savings and on maturity or when ready transfer that £250 to whichever ISA you want to deposit your remaining cash allowance in.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
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