Are Cash Isa's now a waste of time ?!

Paul_Herring

jazzycat wrote: »

Are there any hidden benefits for me in keeping an ISA that I don't know about. Would appreciate any advice. Thanks.

If you're likely to be a tax payer for a substantial amount of time in the future, you're best off keeping it in the ISA.

Or if you think that, in future, ISA rates will beat savings rates again, you'd be better off keeping it in the ISA.

fimonkey

Thanks SO MUCH OP, you've asked hte question that's been on my mind for ages now.

My ISA has dropped to 0.79%. How woeful is that? I have 3 years accumulated, so I plan to transfer 2 years to another ISA, and the remainder to a higher rate normal savings account.

Just need to decide which ones, is the first direct 3% fixed rate currently the BEST fixed rate cash ISA available in a UK based bank? (not interested in ICIC or Ireland/India banks) (Money supermarket doesn't look at fixed rate cash ISA's anymore so finding it hard to compare). Are they likely to drop this rate inbetween me opening the account and them accepting my transfer in?

Many thanks in advance.
Fi

Fella

If you're saving for a house then the effective interest rate you're getting is probably close to 20% (3% from the ISA & 15%+ that house prices will drop this year.....)

phlash

Fella wrote: »

If you're saving for a house then the effective interest rate you're getting is probably close to 20% (3% from the ISA & 15%+ that house prices will drop this year.....)

The maths is not quite right, but the theory certainly is!

House prices dropped by ~16% in the last year. Average house at that time say £185,000, so thats ~£30,000.

£10,000 in an ISA equates to a 300%(house price saving) + 1.9%(Isa rate) =
301.9% :T .

fimonkey

IN answer to my own question, Julian Hodge Bank are doing a fixed rate 1 year ISA at 4%.

Is this a UK bank covered by the £50K guarantee?

Is it a bank that's likely to 'go under'?

Thanks

heathcote123

Fella wrote: »

If you're saving for a house then the effective interest rate you're getting is probably close to 20% (3% from the ISA & 15%+ that house prices will drop this year.....)

:rotfl::rotfl: Have you recalculated your rate yet?