NS&I vs Halifax

steveh2001

Hi Guys,

Quick question - Looking to get the best ISA out there at the moment (mini cash). I believe this is NS&I or Halifax, both at 5.3%. Now i already have halifax accounts, so for convience, i assume this would be the best one to go for. However i noticed halifax is fixed, and NS&I is variable....

What would be the best one to go for? I assume this is just a risk on my part as to whether i think the base rate will increase or decrease?

Many thanks

ReportInvestor

Gotta be the variable one coz interest rates are due to go up in November (90% of commentators expect)

Some people think Kent Reliance's 5.21% variable is better than either because it comes with windfall potential at the cost of only 0.09% = £2.70 (over NSI) for the first year on a £3K investment.

nsandiexpert

Also Terms and Conditions wise, NS&I are 100% secure, you can make withdrawals over the phone or online and there is no penalty for repayment.

Check what the Halifax T&Cs are as they might not be as good

johnofhertford

The only disadvantage with NS&I, that I could see, is that they don't accept transfers in, which is why I went with Halifax variable at lower rate. Otherwise I'd have gone with NS&I.

nsandiexpert

Yeah thats true. The Cash Mini ISA does but that rate isn't as high as the Direct ISA.

steveh2001

Hmm - so many questions

Whats the difference between a mini cash isa and a direct isa?
What is "transfer in"?

I guess NS&I looks the best because of the potential for higher interest rates

ReportInvestor

"Transfer in" refers to moving mini-cash ISAs from previous tax years to a new provider.

Presumably people do this because of a top interest rate, so they often use their mini-cash ISA allowance for the new tax year to also invest with this new provider.

nsandiexpert

Cash Mini ISA is a minimum deposit of £10 and you can withdraw as much or as little as you like. Direct ISA is a minimum deposit of £1000 and the minimum withdrawal is £250. It is also telephone and internet based only whereas the Cash Mini can be operated by post.

The Cash Mini ISA rate is currently 4.45% and the Direct ISA is 5.30%

gil13

is the kent reliance ISA variable and is this likely to also go up if boe hike the base rate?

RayWolfe

KR is variable and has consistantly followed BoE rates both up and down.
Ray

gil13

once you transfer your balance (on account opening) from another provider can you then make contributions for the rest of the year into the aacount or are you barred becasue you have already contributed monthly with the old provider?