CASH ISA,s WITH THE PRINCIPALITY

PENDRAGON06

Check out Principality BS .Offer is 6 % fixed till 5 April 2007 with prize draw of free trip to Jersey.Contact them on 08450450452

Kazza242

PENDRAGON06 wrote:

Check out Principality BS .Offer is 6 % fixed till 5 April 2007 with prize draw of free trip to Jersey.Contact them on 08450450452

The 6% rate (fixed until 5 April 2007) applies to Principality's regular saver ISA. Deposit between £20 and £250 every month for 12 months. If you miss a monthly payment, you will receive the rate for the variable rate cash ISA for the whole term (currently 4.45%).

http://www.principality.co.uk

Speculator

After one year....you can transfer to another provider for free.

An ISA can be transferred direct to another approved ISA operator at no charge, when we receive suitable written instructions. Partial transfers aren't allowed.

So not a bad account. Portman pays 8.00% on their Regular ISA but they charge £30 for transfers to another provider after 1 year.

hansi

Kazza242 wrote:

The 6% rate (fixed until 5 April 2007) applies to Principality's regular saver ISA. Deposit between £20 and £250 every month for 12 months. If you miss a monthly payment, you will receive the rate for the variable rate cash ISA for the whole term (currently 4.45%).

http://www.principality.co.uk

To those of you who can work out interest rates, would I be better off with this Fixed rate ISA at 6% paying £250 per month for 12 months, or putting £3000 straight into a fixed rate ISA at 5% please?

Milarky

hansi wrote:

To those of you who can work out interest rates, would I be better off with this Fixed rate ISA at 6% paying £250 per month for 12 months, or putting £3000 straight into a fixed rate ISA at 5% please?

The answer is: ''Yes, but only if..'' you get about 5% as a basic rate taxpayer on other savings. Here is the calculaton:

Fixed lump sum
5% ISA for 12 months = 5 x 12 (60%months) interest earned there

Fixed equal payments
6% RS ISA, 1/12th a month = 6 x 6.5 (39%months) interest from ISA, thus

60 - 39 (21%months) must come from taxable savings.

Money paid in at the start of every month spends an average of 6.5 months (hence the '6.5' figure above) in that account. During the same 12 month period, therefore, it spends the balance of the time (5.5 months) waiting to go in - and therefore in taxable savings.

So you need 21 '%months' from money in an account for an averge 5.5 months, and you need this net of any tax.

21 / 5.5 = '3.8181..%' which is 'net'

At basic rate that is '4.77% gross' required from the paying-in account

At 40% tax that is '6.16% gross' required

So it's pretty close really.

hansi

Milarky wrote:

The answer is: ''Yes, but only if..'' you get about 5% as a basic rate taxpayer on other savings. Here is the calculaton:

Fixed lump sum
5% ISA for 12 months = 5 x 12 (60%months) interest earned there

Fixed equal payments
6% RS ISA, 1/12th a month = 6 x 6.5 (39%months) interest from ISA, thus

60 - 39 (21%months) must come from taxable savings.

Money paid in at the start of every month spends an average of 6.5 months (hence the '6.5' figure above) in that account. During the same 12 month period, therefore, it spends the balance of the time (5.5 months) waiting to go in - and therefore in taxable savings.

So you need 21 '%months' from money in an account for an averge 5.5 months, and you need this net of any tax.

21 / 5.5 = '3.8181..%' which is 'net'

At basic rate that is '4.77% gross' required from the paying-in account

At 40% tax that is '6.16% gross' required

So it's pretty close really.

I am a non taxpayer so tax doesn't come into it.