Portman 8% Regular Mini ISA!!

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From thisismoney...

Portman Building Society's Regular Saver Isa, Issue 2, which pays a huge 8% fixed until April next year for those

saving between £50 and £250 a month. If you save less than £250 a month, you can top it up to the full £3,000 in March next year.


The account is available through the society's branches. But beware: if you cancel your standing order into the account your money will be moved into the society's Easy Access Isa, which pays just 0.1% on sums up to £250, 1.5% on balances up to £1,000 and 4.5% at £1,000

Milarky

This is a new variation on the ''regular-saver-with-catches''. Does the rate drop in year 2? Maximum average balance: £1500 - £1625 (depending when in the month you transfer.

Hmm. a 5% gross-paying feeder account (4% after tax) paid into 8% - that is a compound rate of between 6% and 6.16% That is still worth considering from anyone looking for more than 5% next year.

I wonder if the Portman will charge savers to transfer out at the end of 12 months?

Chadsman

Very interesting!
There is nothing on their website yet. I imagine it will become available as from the new tax year tomorrow.

sly_dog_jonah

Milarky wrote:

This is a new variation on the ''regular-saver-with-catches''. Does the rate drop in year 2? Maximum average balance: £1500 - £1625 (depending when in the month you transfer.

Hmm. a 5% gross-paying feeder account (4% after tax) paid into 8% - that is a compound rate of between 6% and 6.16% That is still worth considering from anyone looking for more than 5% next year.

I wonder if the Portman will charge savers to transfer out at the end of 12 months?

Portman have charged for ISA transfers out for the past few years, and all their Cash Mini ISAs online suggest this is still the policy:

You can transfer your account to another ISA provider, subject to a £30 administration charge.

So, you need to factor in that charge if you are cynical and think that Portman will not keep the rates high beyond next April.

For those that have £3k to deposit right away, a non-regular saver would be better as the £3k earns interest tax-free for the whole year.

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Milarky wrote:

I wonder if the Portman will charge savers to transfer out at the end of 12 months?

I currently hold the issue 1 Regular Saver ISA and it automatically transfers to the Easy Access ISA currently paying 4.50% after 12 months.

If you want to transfer your Easy Access ISA to another ISA provider, there is a £30 administration charge. However, if you want to close your ISA after 12 months, there is no charge.

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Also note that you have to open this 8% Regular ISA at a Branch so that thay can try and sell you stuff that you don't want. They don't accept postal applications.

mr_fishbulb

sly_dog_jonah wrote:

So, you need to factor in that charge if you are cynical and think that Portman will not keep the rates high beyond next April.

There is no way they would give you 8% in the following tax year on a full ISA of £3,000.

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It's automatically transferred into their Easy Access ISA currently paying 4.50% after 12 months.

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Here's the full details...

http://www.portman.co.uk/savings/regular_saver2.asp?icid=I090-6554900-182N