cash isas with card

pineapple

Does anyone know of cash isas with cards?
With one provider, I have to trail into a branch with a statement and ID and queue - it's a pain!

lisyloo

No, I don't know of any.
But you could get a current account and ISA with the same company and then transfer money online when required.

ses6jwg

Santander Direct ISA and Flexible ISA can be specified with a cash card.

You can then withdraw cash from any ATM, and also pay money and cheques in via Santander ATMs

LongTermLurker

I don't understand. Most people want a cash ISA for the long term benefits. With the small amount you can save each year, if you cash in within the year, or withdraw various amounts throughout the year, the amount of tax benefits you will get over a traditional taxed accound would be tiny.

I have to trail into a branch with a statement and ID and queue - it's a pain!

How often do you actually raid this piggy bank?

Rich1976

LongTermLurker wrote: »

I don't understand. Most people want a cash ISA for the long term benefits. With the small amount you can save each year, if you cash in within the year, or withdraw various amounts throughout the year, the amount of tax benefits you will get over a traditional taxed accound would be tiny.


How often do you actually raid this piggy bank?

well not everyone can afford to pay upto £5100 into an ISA and have a separate accounts for other things. If they're not reaching their annual limit every year surely it would be better for them to just have an ISA and withdraw from it as and when they need?

LongTermLurker

Rich1976 wrote: »

well not everyone can afford to pay upto £5100 into an ISA and have a separate accounts for other things. If they're not reaching their annual limit every year surely it would be better for them to just have an ISA and withdraw from it as and when they need?

No, probably not. ISA rates are traditionally lower than taxed accounts, and it's the long term benefits that make them worthwhile (accumulated tax free interest and the ability to grow income that doesn't need declaring on tax returns).

Even if you do find an ISA rate the same or higher than all taxed rates, the tax saving in such a short period of time is going to be tiny.

If you're not going to leave it alone, you'd be better using a more traditional taxed account, because they're made for very different purposes.

Having two separate accounts would also remove the temptation to empty the ISA and thus encourage the maximum saving.

lisyloo

surely it would be better for them to just have an ISA and withdraw from it as and when they need?

I can see your logic, but that assumes the accounts are roughly equal.

Fact is ISA rates are general worse than other savings accounts, so the tax benefits on a small amount don't make up for having a lower rate.

LongTermLurker

I think it's important at this point to comment that you shouldn't take the "always max out your ISA before saving elsewhere first" addage too literally - it's important to think about what you're doing and what you're actually gaining.

lisyloo

Yes totally agree with LongTermLurker.
There's an old adage about paying off debt.
Well I am lucky enough to have a mortgage at 0.99%, so I'm not paying any off. I'm saving/investing instead. It's pretty much a no brainer.

You need to apply conscious thought to what you read/hear, because whilst they might be correct 95% of the time, they may not be true in exceptional circumstance.
The collapse of the banking system and subsequent credit crunch has put us in unchartered waters, so you need to understand the reasons and apply them to your case rather than just follow it blindly.

Stompa

Some Santander ISAs have cards.

sueeve

I have a LLoyds Isa and also bank on line with them, so it's a matter of seconds to transfer to my vantage account and then I can use that card. (I get higher interest on the current vantage account than on the ISA!!!)