Cash ISAs: The Best Currently Available List

Kazza242

max11 wrote: »

Hello!
what is exactly the meaning of "Rate guarantee? Yes, but not at the current rate"?
what will it happen after 1/7/09?

Hello, what is means is: there is a guarantee, but it doesn't cover the current rate being paid for that ISA. E.g. The Natwest e-ISA, pays 3.51% if your balance is at least £10,000. The guarantee promises that the rate paid will at least be equal to base rate (currently 1.00%) until July '09. EDIT: After 01/07/09, the rate could drop below base rate.

max11 wrote: »

The other option I was considering is ING
"Our current rate is 3.0% AER* variable (2.96% gross p.a variable, including a 1.47% bonus fixed for 12 months from opening) reverting to our variable Cash ISA rate currently 1.49% gross, 1.5% AER."
Will it follow the variable rate?

Not, sure I understand this question. The fixed bonus rate is included in the 3.00% advertised. After the 12 month bonus expires, the rate will revert to 1.49% gross.

max11 wrote: »

As a general rule, it is convenient to traksfer every year all my own cash Isa to the highest rate ISA account, isn't it?

That depends on whether other ISAs are paying more competitive rates than your existing ISA. You have to take into account that some transfers can take some time to complete, therefore the new ISA must be paying a rate that makes transferring worth it. Note also that some ISA providers do backdate interest during transfers, to the day that they receive the cheque from your previous ISA provider which is handy.

max11 wrote: »

If yes, at the beginning or at the end of the tax year?

thank you

If your ISA is a variable rate, no notice ISA, then you can transfer it to another ISA provider at anytime during the tax year, not just at the beginning or the end. The beginning and end of a tax year are the busiest times of the year for ISA providers, so doing a transfer at that time does usually take longer to complete than at other times of the year.

Kazza242

max11 wrote: »

Is it worth inserting in the list this e isa account?
HBSC AER 2,75%
it seems to have not any hidden aspect and accepts transfers.

Could it be convenient for me?
As it has a variable rate, the interst rate should increase, the problem is to guess when?!

On the page you've linked to, if you look at the section 'In detail', it states:

Transfers in are not available

Shame really, I would have included it in the variable rate section of my list, if it did accept transfers in.

max11

Kazza242 wrote: »

Hello, what is means is: there is a guarantee, but it doesn't cover the current rate being paid for that ISA. E.g. The Natwest e-ISA, pays 3.51% if your balance is at least £10,000. The guarantee promises that the rate paid will at least be equal to base rate (currently 1.00%) until July '09. After 01/07/09, the rate could drop to base rate.
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Not, sure I understand this question. The fixed bonus rate is included in the 3.00% advertised. After the 12 month bonus expires, the rate will revert to 1.49% gross.

Thak you Kazza!
So potentially/probably after 1/07 Natwest (or RBS) could drop down the interest rate as the base rate, while at least ING keeps the 1,50 % bonus that makes it much more convenient, is it right? I'm going to open it (and actually it is the same interest rate as the ING saving gross interest rate!)

Kazza242 wrote: »

That depends on whether other ISAs are paying more competitive rates than your existing ISA. You have to take into account that some transfers can take some time to complete, therefore the new ISA must be paying a rate that makes transferring worth it. Note also that some ISA providers do backdate interest during transfers, to the day that they receive the cheque from your previous ISA provider which is handy.
---
If your ISA is a variable rate, no notice ISA, then you can transfer it to another ISA provider at anytime during the tax year, not just at the beginning or the end. The beginning and end of a tax year are the busiest times of the year for ISA providers, so doing a transfer at that time does usually take longer to complete than at other times of the year.

If the "new" isa account is much more convenient and so it worth to switch, doesn't the previous account pay interests until the last day before the transfer?
My question about the best period was because ING now gives higher interests for isa account, is it only a case?

thanks
max

DemiDee

I'm self employed and have all of my ISA money with National Savings. I have no idea what their rates are for this year, but I'm inclined to keep it in and add more simply because of the fact that I don't have to declare it on my self assessment forms.

I would be interested to hear if there's anything better out there for self employed bods like myself.

Best wishes to all,

Dee

sheslookinhot

DemiDee wrote: »

I'm self employed and have all of my ISA money with National Savings. I have no idea what their rates are for this year, but I'm inclined to keep it in and add more simply because of the fact that I don't have to declare it on my self assessment forms.

I would be interested to hear if there's anything better out there for self employed bods like myself.

Best wishes to all,

Dee

ISA is tax free income and so does not need to be declared. I would move to a better paying account. There are so many ISA's with a much better rate.

MarkyMarkD

Kazza242 wrote: »

Note also that some ISA providers do backdate interest during transfers, to the day that they receive the cheque from your previous ISA provider which is handy.

You don't mean what you've said.

All providers pay interest from when they receive the cheque. SOME providers backdate to the day after the other bank ISSUED the cheque, meaning that the customer doesn't lose out due to postal delays.

DemiDee

I know this sounds like a daft question, but when what is the best date to transfer a lump sum of money from one ISA provider to another?

sheslookinhot

DemiDee wrote: »

I know this sounds like a daft question, but when what is the best date to transfer a lump sum of money from one ISA provider to another?

The date you decide to transfer. The sooner the better.

Paul_Herring

DemiDee wrote: »

I know this sounds like a daft question, but when what is the best date to transfer a lump sum of money from one ISA provider to another?

The best time NOT to transfer is April, when the providers are usually overwhelmed with new applications.

Kazza242

max11 wrote: »

Thak you Kazza!
So potentially/probably after 1/07 Natwest (or RBS) could drop down the interest rate as the base rate, while at least ING keeps the 1,50 % bonus that makes it much more convenient, is it right? I'm going to open it (and actually it is the same interest rate as the ING saving gross interest rate!)

Potentially the Natwest (or RBS) rate could go down to less than base rate. The current guarantee to be equal to at least base rate expires on 01/07/2009, afterwards they could drop the rate to whatever they wanted to. The ING bonus rate is fixed for 12 months so it has a better rate guarantee during that period.

max11 wrote: »

If the "new" isa account is much more convenient and so it worth to switch, doesn't the previous account pay interests until the last day before the transfer?

Yes, they do pay interest up to the last day before the transfer. However, it's what happens when the money is between the two providers that's important. Sometimes, there is a delay between the old ISA closure and the receiving provider opening your account - this isn't important if your new ISA provider pays interest from the day after your old ISA is closed. Some providers, for example, Halifax (if opening a fixed rate ISA), do this.

max11 wrote: »

My question about the best period was because ING now gives higher interests for isa account, is it only a case?
thanks
max

ING has a better guarantee over the 12 months. It's only the fixed rate bonus which is guaranteed at 1.47% for a year, but even if the rate dropped to that, it could potentially pay a better rate than Natwest - should the latter drop their rate to match their guarantee. After the guarantee the Natwest rate could be potentially worse as it wouldn't need to equal base rate.