Cash ISAs: The Best Currently Available List

Kazza242

The first post of this thread has been updated.

There have been a lot of rate changes, as providers respond to the latest BOE base rate cut. There has also been some fixed rate ISA activity.

I have included two new ISA categories, 'under 25s' and 'over 65s', as some of you have requested this, both on the thread and via PM.

RayWolfe

Well done Kazza.
Thanks for all your attention to this subject.

MarkyMarkD

Thanks very much for adding the under 25s and over 65s categories - that makes things more comprehensive - and for reinstating the fixed rate category content.

Well done for all the hard work!

Can I suggest a further change which would reduce the length of the entire listing, as well as being more useful?

Why not combine the "allowing transfers in" and "new money only" tables, but mark each one to show whether it allows transfer or not?

Having the "new money only" table first, as at present, is illogical because "new money only" is less useful than "allowing transfers in" but the accounts get listed first. Also there are accounts listed in "new money only" which have rates which are so bad that you wouldn't bother listing them on a combined list, so they should just get ditched.

Why on earth would anyone consider Barclays at 4.16% (third in the "new money only" list) when five of the "allowing transfers in" pay a better rate and accept new money as well as transfers in?

Indeed, going further, why not combine the two new categories - under 25s and over 65s - within the same listing, but flag the age requirement? That means that anyone who meets either age requirement will see the product listed in its logical place, in rate order, and choose it, rather than having to think of looking at a separate table.

Regarding fixed rates, your table of three accounts omits Kent Reliance paying 4.50% with a minimum of £100, lower than the minimum on the other three accounts mentioned.

Kazza242

MarkyMarkD wrote: »

Why not combine the "allowing transfers in" and "new money only" tables, but mark each one to show whether it allows transfer or not?

Having the "new money only" table first, as at present, is illogical because "new money only" is less useful than "allowing transfers in" but the accounts get listed first. Also there are accounts listed in "new money only" which have rates which are so bad that you wouldn't bother listing them on a combined list, so they should just get ditched.

I originally thought about doing this when I first created the list. However, I think it is better to keep these two categories separate - in the same way that Moneyfacts also lists them separately in their ISAs search facility. The current format allows MSEs to check the best rates they can get for their own circumstances. It highlights the fact that there are ISAs that accept 'new money' only and there are others that also accept transfers in.

MSEs can go to the relevant section that applies to them and what they are looking for. If I were to combine the two categories to create a 'Variable rate mini cash ISAs' section, it would become too long, especially come March/April when the majority of new ISAs launch. At that time of the year, the rates offered in the 'new money' section are often significantly higher than the 'transfers in' section, as providers try to win new business from customers.

Basically, the list is structured in a way that makes it easier to find what you are looking for without having to look through ISAs that don't match your circumstances.

I have removed the 'Strict conditions apply' section as that included only the Abbey Super ISA, which isn't a good product anyway. Historically, it was only on the list because it used to pay 8.00% and I wanted to explain why it wasn't a good product, despite the rate. The 30 days notice section under the 'new money' heading has also been removed, as the Cumberland ISA has been reduced from 5.75% to 4.00%.

MarkyMarkD wrote: »

Why on earth would anyone consider Barclays at 4.16% (third in the "new money only" list) when five of the "allowing transfers in" pay a better rate and accept new money as well as transfers in?

I don't want to make the list too restrictive. For someone who is already a Barclays customer, it might be more convenient for them to go with a provider that are already with. I don't necessarily do this myself, but reading through the posts on this thread, it is a consideration that some people take into account when opening an ISA.

Also, some ISA providers haven't yet announced how much they will be cutting their rates by (following the latest 1% BOE base rate cut), so this has to be a consideration when opting for a variable rate ISA. What might be more competitive at this moment in time may not be so in a couple of weeks time when providers apply their rate cuts.

MarkyMarkD wrote: »

Indeed, going further, why not combine the two new categories - under 25s and over 65s - within the same listing, but flag the age requirement? That means that anyone who meets either age requirement will see the product listed in its logical place, in rate order, and choose it, rather than having to think of looking at a separate table.

I considered this last night and may well combine them when I create the new ISAs thread next year. I'm also considering separating the ISA categories into separate posts at the top of the thread - with clickable anchor links which will take MSEs to the relevant post in the thread.

MarkyMarkD wrote: »

Regarding fixed rates, your table of three accounts omits Kent Reliance paying 4.50% with a minimum of £100, lower than the minimum on the other three accounts mentioned.

I saw this ISA last night, as I was adding the age related ones, but I forgot to add it. I have added it to the list now.

lewianbra

According to the Alliance & Leicester website, the 4.5%...
"Rate includes a 1.50% bonus payable until 15 February 2010."

Which means that the time to enjoy the bonus is longer than currently on p. 1 of this thread (a quite important argument in its favour, I think), but then it goes down more sharply...

By the way, I don't think that the most current BOE rate change is already into account so should I expect it to go down by 1% soon? (If so, this should hold for many of the others too...)

masonic

Kazza242 wrote: »

I originally thought about doing this when I first created the list. However, I think it is better to keep these two categories separate - in the same way that Moneyfacts also lists them separately in their ISAs search facility. The current format allows MSEs to check the best rates they can get for their own circumstances. It highlights the fact that there are ISAs that accept 'new money' only and there are others that also accept transfers in.

The issue at present is that in the situation where someone has only new money to deposit, they could easily be misguided into looking at the best ISA in the 'new money only' section and completely missing a better deal that allows transfers. This never used to be a problem, because new money only ISAs were more generous with interest in the past. Perhaps just a statement at the start of the 'new money' to state better ISAs for new money may be available in the ISAs 'allowing transfers in' section?

MarkyMarkD

Thanks, Kazza, for the detailed and thoughtful response. Taking into account masonic's post too, isn't the answer to put the "transfers in allowed" section before the "new money only" rather than after?

Everyone with new money can use the "transfer in allowed" providers; not all of those putting new money in will think about transferring as well if they aren't presented with that list first.

Kent Reliance have pulled the 4.5% fixed rate ISA since I posted about it last night - it went at close of business today. I saw it announced by Moneyfacts this afternoon. Sorry you added it for such a short time of validity!

cottager

masonic wrote: »

The issue at present is that in the situation where someone has only new money to deposit, they could easily be misguided into looking at the best ISA in the 'new money only' section and completely missing a better deal that allows transfers. This never used to be a problem, because new money only ISAs were more generous with interest in the past. Perhaps just a statement at the start of the 'new money' to state better ISAs for new money may be available in the ISAs 'allowing transfers in' section?

Hi Kazza -- thanks from me as well, and appreciation for the hard work maintaining the list.

Personally I'm also inclined towards combining the new money and transfer lists, so that better deals for new money could not be overlooked where an institution also allows transfers in. As it is, I believe they could be.

It is human nature to 'seize on' the first thing you see applicable to you, and not read further -- I've been guilty of it myself.

As masonic has said, with the sections arranged as they are, this does not arise if you want to transfer, as you must scroll down to find the section which applies to your circumstances (probably making a mental note on the way down that you've scrolled through sections for new money only). But the same is not true if you have new money only -- you see this heading first and think "Yep, that's me", and not realise there were other, possibly better alternatives further down among the institutions who also allow transfers.

If the two were combined as MarkyMarkD suggests, what about colour coding?

They could perhaps be distinguished in this way? Leave one type black, but make the other type green or something (a colour which does not interfere with the colours used for links + active and visited links). Each entry would, as he says, need to be clear about which did or did not allow transfers in, and another very clear note beneath the heading would also need to be made about what the different coloured entries were. I believe you would still need to have two separate sections for variables and fixed rates.

Another alternative would be to have some duplicated entries in both lists as appropriate, but this would lengthen the total overall list even more.

I do see merit in keeping the sections as they are for the reasons you give, but if this is the case then Masonic's suggestion would be extremely helpful -- a prominent statement at the start of the 'new money' section pointing out that there are more alternatives further down, in the section for those who also accept transfers in.

Just my two pennies' worth, which doesn't detract at all from the hard work and effort you put into these lists for the benefit of the rest of us, and gratitude for that

mary

Thanks also for the marathon task of updating the thread.

One suggestion only. When you have updated each ISA, is it possible to put the date alongside it when you did it, so that we can see whether it is before or after a recent rate cut/rise.

purplestar133

MarkyMarkD wrote: »

Kent Reliance have pulled the 4.5% fixed rate ISA since I posted about it last night - it went at close of business today. I saw it announced by Moneyfacts this afternoon. Sorry you added it for such a short time of validity!

I sent off an application for this account by first class post on Friday. They should have had it by Monday - do you think they will accept my application?