Cash ISAs: The Best Currently Available List

CuparLad

The rise in fixed rates is an indication that the markets still expect the BoE to raise rates this year, so they're trying to lock in money at cheaper rates overall by offering what look like great rates today that may not be so great later on. Always DYOR and be sure that you're happy with certainty now vs. the possibility of a better return later on offset by your money sitting around in the meantime.

Moneyfacts defaults to sorting the list by "Provider Links First" i.e. those that pay to be ranked. Just change the sort order to "Rate" and you'll see the highest rates on the first page.

dlevene

https://forums.moneysavingexpert.com/discussion/comment/81990905#Comment_81990905

Yeah - I do wonder whether that's why the easy access offerings are so meagre (or come with so many strings) too. Providers wanting to keep them as low as possible for as long as possible (not unusual in itself) anticipating they'll inevitably have to nudge them up when interest rates change.

jungleboy123

https://forums.moneysavingexpert.com/discussion/comment/81990905#Comment_81990905

ok a stupid thing i did (very stupid) but when i prompted ai and asked why so generous fixed interest rates at the moment it said the opposite (which confused me because i agreed with you).

Both ai systems said that the reason for high fix rates is because they expect a drop later on, so they are pricing in that the 4.5% is how high rates could plateau before dropping.

I don't really understand that logic. I was going to rush and put in a 1/2 yr fix with banks offering some cashback, but not decided.

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/81991046#Comment_81991046

The answer will likely have depended on how you phrased your question. If you, as suggested above, asked why the rates are so generous just now, the response will be skewed into answering why they are generous (AI always tries to please).

CeliaSeas

https://forums.moneysavingexpert.com/discussion/comment/81991205#Comment_81991205

I agree. It's in the interests of the AI company to tell you what you want to hear(at least to a certain extent) The more you start to like it and feel as if it's a conscious being and your friend, the more likely you are subscribe to the paid service.

And yes, to me the increase in fixed rates on offer suggests that they believe rates will go higher.

refluxer

https://forums.moneysavingexpert.com/discussion/comment/81990784#Comment_81990784

@Jazzking My Santander fixed rate ISA was due to mature on 1st May 2026 and I received a maturity email on 15th April which stated…

You can change to a different ISA
We have a range of cash ISAs available. You can upgrade your Fixed Rate ISA up to 28 days before maturity and the
interest rate will change straight away. To find out more, go to santander.co.uk, call us on the number above or visit
your local branch

Support with upgrading your ISA
The easiest way to upgrade your ISA is through Mobile and Online Banking. Discover how to upgrade by reading our ‘how do I upgrade my ISA online?’ FAQs. You can find this by going to
santander.co.uk and visiting the ‘Guide to ISAs' support page.

I think this has been the case for a number of years but, as always, you would need to check your own account T&Cs to ensure the same applies to the account you have.

In my case, I simply upgraded the existing fixed rate ISA to another fixed rate ISA so I can't comment on the consequences of upgrading to an easy access ISA and subsequently withdrawing the funds or transferring away before the original maturity date but, as the penalty would be pretty severe for getting this wrong, I would probably want confirmation from Santander that you can do what you want to do without penalty first, if I was in your position.

Santander add the annual interest payment on the day after maturity so you would need to ensure that you didn't close the new, upgraded account before that interest payment is made or things could get complicated. I upgraded in the early hours of the 1st May (the day of maturity) and my interest was added to the new fixed rate account on 2nd May as expected but I'm not sure when that payment would be made if you upgraded weeks in advance.

It's worth noting that Santander don't appear to state explicitly that you can upgrade without a penalty, but it is inferred by the fact that they tell you you can upgrade up to 28 days in advance and don't mention that a penalty would apply.

It's possible that you're limited to only being able to upgrade from one fixed rate ISA to another fixed rate ISA of course, in which case what you want to do may not be possible (I don't recall the options unfortunately, as I was only looking for another fix).

luci

https://forums.moneysavingexpert.com/discussion/comment/81988541#Comment_81988541

I was happy to read your comment, as I'm in exactly the same position. I have trimmed down and simplified the accounts I have and have stopped chasing fractions of a percentage point. When I see posts here about better rates, I feel a bit of a financial failure that I'm not making the absolute best of my money. The reality is that, we have more money now than we can ever use before we pop our clogs and no-one to leave it to.

jungleboy123

https://forums.moneysavingexpert.com/discussion/comment/81991221#Comment_81991221

interesting. I missed the santander offer, though the recent santander, hsbc et al cashback new isa offers have been very generous this year it appears.

if the cashback is taken then its bringing an equivalent rate of shy of 5%. Therefore it does seem interesting that potentially BOE rates could creep near/above 4.5% in future.

clairec666

https://forums.moneysavingexpert.com/discussion/comment/81991956#Comment_81991956

I like your approach. Before rate-chasing it's a good idea to work out how much interest you'll gain for an extra .1% - unless you're saving more than a few thousand, it might not seem worth the effort. Especially if you're having to go through irritating ID checks. And for me, the environmental impact is important, and as some accounts send you a mountain of unnecessary paper I'd rather take a little bit less interest instead.

Rich2808

https://forums.moneysavingexpert.com/discussion/comment/81991956#Comment_81991956

I agree about simplification.

Managing multiple accounts across multiple institutions is hard work - and a lot of effort. And if it is hard for you - as the account holder - imagine what it might be like in the future for your relatives/those administering your estate. It will happen to us all one day - and you never know when.

And the latter is where customer services comes in too - how efficient are their processes for things like bereavement and power of attorney say so your executors can access funds easily. With some admin is very easy - others dreadful. But you never know how good or bad that side is - until its loo late.