Cash ISAs: The Best Currently Available List

bioboybill

https://forums.moneysavingexpert.com/discussion/comment/81918378#Comment_81918378

Yes. That's what I was thinking. I've got £52K in T212 at a measly 3.6% now the first year bonus is finished. My wife also has £36K at 3.6%. I need to keep a fair bit of ISA money in a flexible ISA to fund regular savers for myself and my wife, but I don't mind having some in a fixed ISA. My current thought is to wait until the next BOE MPC meeting on 19th March and see what effect that has on rates. However, it's looking like I might put £20K from T212 into HSBC in March, then put £20K into Prosper flexible ISA after 6th April. I could then transfer the remaining £12K to whatever is best that accepts transfers in.

For my wife I was thinking of £20K to Prosper in March, then transfer her remaining £16K into the best Flexible ISA that accepts transfers after April 6th.

Does that make sense? I know that by putting my ISA into Prosper next tax year rather than transferring it uses up my allowance, but the ones that have the best rates either don't take transfers or won't take them from T212.

bioboybill

Just noticed the Prosper Cash ISA is now 4.7%.

winkowinko

Prosper.

Does anyone know what the ISA funding window is?

If I were to open the account today, could I wait until 6th April before depositing the £10k?

csw5780

https://forums.moneysavingexpert.com/discussion/comment/81918633#Comment_81918633

From the app:

Hal17

https://forums.moneysavingexpert.com/discussion/comment/81918378#Comment_81918378

Hello charlie12525, thank you for your post. That made me go and look for some additional information. I found the following information which might be helpful to others. Your maths were spot on. 😎

The cashback bonus can be an attractive reason to open one of HSBC’s cash ISAs, but Eastell says consumers should “focus on more than just the headline cashback rate” as they may be able to get a better return on their money elsewhere.

For example, HSBC’s Loyalty Cash ISA pays just 2.50% AER to standard current account customers, compared to the market-leading easy access ISA rate of 4.56% AER (which includes a 0.96% bonus for 12 months, subject to conditions).

If savers deposited £20,000 into the leading ISA paying 4.56% AER for one year, they would receive around £912 in interest.

However, if they deposited this sum in HSBC’s Loyalty Cash ISA, they would earn just £500. Even if you add the £150 bonus, savers could earn significantly more interest by putting their money in a higher-paying account.

On the other hand, HSBC’s Fixed Rate Cash ISA offers a much more competitive return of 4.00% AER and, taking into account the cashback reward, it can offer a greater return than the market-leading one-year ISA.

Those who deposit £20,000 in this account could earn £800 in interest over one year, plus the £150 cashback bonus, taking their total return up to £950.

By contrast, savers may only receive around £846 if they put the same amount into the top one-year ISA paying 4.23% AER.

Pompeydave1967

XTB cash Isa looks interesting - 6% , easy access etc , bonus of 2% only lasts for 2 months then down to 4% .

BigBlueSky

https://forums.moneysavingexpert.com/discussion/comment/81918977#Comment_81918977

It's actually for 90 days, rather than 2 months.

They don't accept transfers in, but does anyone know if you can definitely do an ISA transfer out? I'm not sure if this is a requirement of all providers. Obviously this is only good for the 90 days.

refluxer

https://forums.moneysavingexpert.com/discussion/comment/81918990#Comment_81918990

While some ISA providers are known not to accept transfers-in, I've never heard of one that won't allow you to transfer out but, as always, you'd need to read the T&Cs carefully.

One thing is for sure though - as they are not on the list of providers who use the BACS ISA transfer service, transferring away (when the time comes) could end up being a pain and will rule out being able to transfer to many of the other ISA providers.

Also pay attention to the following FAQs, which imply that your interest is paid out to an external account (and not into the ISA which would be preferable for most people) and also that your money may end up in a QMMF at some point in the future which isn't a bank account and therefore wouldn't be covered by FSCS protection, as I understand it.

How is interest paid on a Cash ISA?  

Interest is calculated daily and paid out monthly.

Will my cash be held in a Qualifying Money Market Fund (QMMF)?  

Currerntly we hold Cash ISA funds at Tier 1 banks under CASS rules. Looking ahead, we may place client funds into one or more Qualifying Money Market Funds (QMMFs)

winkowinko

I've had a reply from Prosper regarding the funding window for their ISA

The account cannot be opened without being funded. There is no deadline for opening the account, however we cannot guarantee the rate for a specific amount of time.

The account will only be considered as open once it is funded.

In order to receive the boosted rate, £10,000 is the minimum amount to fund as mentioned in the app.

If you do not currently have the ISA allowance for £10,000, you will need to wait until the new tax year in order to fund the product.

moi

https://forums.moneysavingexpert.com/discussion/comment/81918710#Comment_81918710

I opened Prosper this morning (at 1.82%, not 1.92% bonus 😞) As part of the opening, I had to add money (into the Prosper wallet, then into the ISA) there and then. I couldn't see an open-and-don't-fund-yet.