Scarborough BS launch Guaranteed ISA - 6.10%

Kazza242

Scarborough Building Society launched their guaranteed mini cash ISA this week, paying 6.10% (until 31st March 2008 and then 5.50% until 31st March 2009. The minimum opening (and operating) deposit is £1,000. The isa is open to new isa customers and those wishing to transfer in existing isa savings from elsewhere.

Some other details:

- Interest is paid annually on the anniversary of the account being opened.
- You can add to your isa up to the annual maximum of £3,000 during the tax years 2006/2007 and 2007/2008.
- You can make penalty free withdrawals if you give 30 days notice.
- The isa matures on 31st March 2009 after which it will convert into an easy access isa.
- They allow you to close your account, or transfer to another ISA provider at any time with a loss of 30 days gross interest.

More details here.

mary

Tempting.
The thing is I have £16.9K worth of ISAs so far, but the snag I see is the 30 days lost interest when you transfer out at the end of 2 years, which would mean around £85 ish. Currently with A&L @ 5.7%, was looking at Ing, but you can't transfer in, only open a new one for 6% AER. I hesitate to lock money away for a 2 year period, and prefer to chase higher short term rates but there is definitely a slow hassle factor involved in transferring as I discovered between Halifax and A&L last time round

lisyloo

Hi mary,

I am currently with A&L and am transferring to Ruffler at 5.93%.
I got my application and documents back from ruffler by return of post (less than 2 days).
A&L took my instructions over the phone the phone the next day and said it would be 10 working days max.

I can update you when it goes through if you like to see how long it takes but seems to be pretty quick so far.

Kazza242

mary wrote:

Tempting.
The thing is I have £16.9K worth of ISAs so far, but the snag I see is the 30 days lost interest when you transfer out at the end of 2 years, which would mean around £85 ish.

mary - I agree it is tempting. I think the 30 days loss of interest penalty only applies if you decide to transfer out of the Scarborough isa before it matures on 31st March 2009. From the 1st April 2009 the guaranteed ISA will have been converted into an easy access isa which doesn't appear to have a transfer out penalty:

Can I transfer my current Mini Cash ISA from the Scarborough Building Society to another provider?

Yes, by providing us with your instructions, we can arrange to transfer your ISA to another ISA Manager, but please check the new ISA Manager is able to accept your transfer before confirming your instructions to the Society. We will complete the transfer in no more than 30 days following your instruction.

Easy access isa info.

I will double-check this with Scarborough tomorrow, but I think the above is correct.

The Abbey Direct ISA paying 5.75% for balances of £9,000 and above is also tempting. See this thread for more details.

mary

When is it going to be a level playing field to make a fair comparison?

masonic

mary wrote:

When is it going to be a level playing field to make a fair comparison?

Things usually calm down by June.

nrsql

This sounds like a fixed rate ISA (haven't looked at it).
So if rates go up you are stuck with losing a months interest to chase the (possibly much higher) rates.
Of cause if rates go down over the next year you are on to a winner.

Milarky

Another provider that will accept transfers-in. Interestingly they already provide an 'in-house' ISA in the My Savings account. The cash ISA market looks to be loosing up at last - and that can only be a good thing for the longer term.

puthsardarade

Hi,

I was going to transfer my ISA at Ruffler which is currently 5.93% to this one. I just need to give Ruffler Bank 30 days notice, but it was mentioned that If i wish to transfer out anytime before Mid 2008 I would lose 30 days interest is that correct even if you give 30 days notice? I would be looking to transfer out when the rate reduces from 6.10%.

Would I be better of staying with Rufflers and opening a new one with ING if the 30 days interest loss is correct?

Thanks,
G