ISA Provider Interest Rate Consistency

ISA_Man

Given the recent complaint into ISA rates by Consumer Focus, I've been wondering, is it best to chase the top ISA rates each year? Or would it be best to go for a provider with a history of rate consistency? By consistency, I mean those providers that have a track record of increasing their rates soon after the BOE base rate is increased (or even back dated interest to the date of the rate change) coupled with a delay in passing on any decreases in the BOE rate for a month or so.

From experience, the top rate payers each year are quick to cut their rates and can be reluctant to pass on any base rate increases to customers. Another problem can come in the form of annual ISA issues where they'll offer high rates for new money but leave your previous years contributions sitting in a poor interest rate paying account leaving you with little choice but to transfer out and lose several days/weeks worth of interest. The same frustration comes from 12 month 'bonus' rates which seem attractive at the time but inevitably leave you with a poor interest rate paying account after that time.

Which providers have consistently offered reasonable rates with no bonus (rather than the top paying rates) over the past few years including passing on base rate increases quickly and delaying passing on any cuts to the base rate? The only example I can think of from my experience with ISA accounts is Yorkshire Building Society who offer between 1.9% to 2.25% on their e-ISA account depending on how much you have saved. It's not as good as the likes of Santander's 3.5% account but better than the many 0.5% to 1% accounts out there and they are quick to pass on increases in the base rate. Are there any other banks/building societies that have a track record of behaving in this way?

steady__eddie

"National Counties offers most consistent rates to savers", not my words but theirs and is published in the Members Update which I received today with the please vote for me or I'll lose my £212k a year job begging letter.
It was an article written by Michelle Slade of Moneyfacts .co.uk, "the UKs leading independant provider of personal finance information".
She goes on to say, "Whether they are after an easy access, notice or ISA account, National Counties members can be confident that the Society has their needs at heart. It continues to offer competitive rates to its members and remains one of the few providers doing so without having to resort to short term bonuses or restrictions".
I wonder who the others were ?

claire07

I think National Counties used to have great rates but lately not so much. My Guaranteed ISA is just to mature and they are only offering 1.81 so it's yet another one I'll be moving away from National Counties. I think Kent Reliance have always been pretty consistent with their ISA rates.

steady__eddie

Just logged on to Monmouth to check the interest on my regsave and lo and behold Moneyfacts have been at it again. This time with the Mons ISA .(CURRENTLY 2.5% variable). Link is http://www.monbs.com/content.php?nID=2;nsID=86 if anyone is intrested. The consistent word is prevalent.
Have to agree with you claire re NCBS, I also am in the same boat as you with one from this current year and one also from the year before which I had maintained for ID purposes. I think I'll open a mickey mouse rate a/c. with £100 and transfer both of them.
Kent do tend to drop over time but they do allow you to transfer to a higher paying one with themselves. Expect to buy a stamp though because the skinny beggars dont supply a business reply envelope.

martinman3

I believe that National Counties used to be in the most consistent cash ISAs list but not right now. Leek United also used to be in the list but they cut their rate a little more in 2008 and dropped out.
The current list is here http://moneyfacts.co.uk/compare/savings/cash-isa/18-month/

Standard Life Cash Savings Cash ISA Direct Access 2.65% £1 None

Monmouthshire BS Cash ISA 2 2.50% £10 30 Day

Earl Shilton BS 90 Day Cash ISA 2.45% £10 90 Day

Harpenden BS Simply ISA 2.25% £1 Instant

Newbury BS Notice Cash ISA 2.10% £50 60 Day

Principality BS e-ISA 1.80% £1 None