Cash ISAs: The Best Currently Available List

clairec666

In the case of Skipton, I would open something like the Two Access Cash ISA (3.9%), do an internal transfer out of the matured FR ISA within the 14 day cooling off period, and then instigate a transfer elsewhere. From my experience, transferring between Skipton ISAs is instant, then you can earn a decent enough rate while sorting out your onward transfer. Downside is that you can't instigate a transfer out until after maturity, so you might miss out on the best rates.

I think maturity options should be broader though. An easy access option at least should be offered. Other providers do it better.

gwapenut

I don't actually see how they have the right to opt you into a new contract on maturity without your explicit consent. I know they are not the only provider to do this - I have had a go at Coventry in the recent past. Someitmes life events do put you out of action for a while.

I get the auto-renewal for things car insurance, even though I don't like it, because it's the safest option and it's usually a similar deal to your previous. More often than not, though, the fixed rates you are shunted into by default at the end are wholly unattractive.

I believe the default should be an easy access ISA and I believe the FCA should be policing this.

flaneurs_lobster

I don't actually see how they have the right to opt you into a new contract on maturity without your explicit consent.

They have your explicit consent because it's in the T&Cs of the product that you agree to when you take out the product.

Probably not a feature that most readers here would be in favour of but no doubt some people find it ideal. A blanket rule that says all ISAs must mature into an Easy Access product just sounds over-restrictive and would remove an option that some find useful.

Plenty of product out there that doesn't do the 'renewal into fixed' trick.

gwapenut

https://forums.moneysavingexpert.com/discussion/comment/82174230#Comment_82174230

But isn't that an unfair term in a contract then? To sign you into an unknown lock-in in 5 years time? There are plenty of less shady practices which have been called out by watchdogs.

As an example, broadband contracts have had a watchdog leaning on them to change things (not necessarily for the better). Sure, customers used to sign up to above-inflation price increases, but that didn't mean it was allowed to continue. Arguably "progress" means customers are now locked into even higher price increases, but that is even more OT.

Regarding explicit consent having been granted - for a 5 year fixed ISA, they then tend to (in Coventry's case) auto-opt you into another 5 year fixed ISA, taking your commitment to 10 years from now. With many other long term schemes, modern nanny state legislation demands that you are given appropriate advice. Sure, you can exit that new ISA with a penalty, but it just seems out of step with the way everything else in the world is going towards people not having to take responsibility for what they sign up to, and everything needing to be explained with crayon and pictures.

clairec666

https://forums.moneysavingexpert.com/discussion/comment/82174230#Comment_82174230

I'd favour a rule that says the default maturity option should be an easy access ISA, but other maturity options (e.g. another fix) could be offered. So there would be definite consent from the account holder before they are locked in for another term, and they couldn't be caught out by unexpected life events etc.

flaneurs_lobster

Not sure you can describe a renewal which is optional (at maturity) as a 'lock-in'?

You either accept that people have responsibility to have oversight of their funds and the conditions that pertain to the products in which they are "invested" or you don't allow any products that restrict access to funds to be sold at all.

By all means make some rule changes that says that such Terms have to be printed in 24pt bold Comic Sans but I rather suspect that people complaining when the term is enacted won't have read past the headline interest rate in any case.

clairec666

https://forums.moneysavingexpert.com/discussion/comment/82174255#Comment_82174255

I haven't checked what the original comment was that triggered this conversation, but I think the problem was that Skipton's default maturity option is another fix, and in fact all the maturity options offered were fixes, so a less savvy saver might unwittingly find themselves locked in for another year.

I'm talking about the general public, rather than members of this forum. I imagine not all people will keep a spreadsheet of their maturity dates like I do, so will be reliant on getting a maturity email/letter. Yes it's their fault for not reading the T&Cs properly (and not making a spreadsheet!) but unfortunately some people are not that savvy.

CeliaSeas

https://forums.moneysavingexpert.com/discussion/comment/82173518#Comment_82173518

This was my concern, yes I could set things up such that the funds are transferred out to another provider at maturity but if something goes awry it could get stressful and time consuming. As it happened Vida came up with a one year fix at the same rate, and which defaults to an easy access account at maturity if no instructions are given, so I went with that instead😎

winkowinko

Zopa 1 year fix (min £500) now paying 5%

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82176940#Comment_82176940

Still no transfers in?