Cash ISAs: The Best Currently Available List

Kazza242

MarkyMarkD wrote: »

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.

No, I meant:

Some ISA providers pays interest from the day after your old ISA is closed. Interestingly, most, but not all, ISA providers pay interest from the day they receive the cheque. I recall when reading some building society ISA terms and conditions last year, that some delay before they started paying interest. There was a thread on it. Also, some providers pay interest before the cheque has cleared and others don't. It's definitely worth checking this in the terms and conditions of an ISA before actioning a transfer.

Kazza242

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?

If possible, it's better to do a transfer before ISA season begins. ISA season usually runs from mid-March to early May. This is when providers are most busy opening new ISAs and processing transfers.

I once did a transfer in early March which went through really quickly, but other people, who left it another couple of weeks experienced delays.

max11

Kazza242 wrote: »

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.

oh, I haven't realized, but they could do that! that would be very unfair!
the inflation was 3% in Jan, the base rate is 1.5%...at the moment it is half! and they could go lower!

Kazza242 wrote: »

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.

didn't know neither this

Kazza242 wrote: »

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.

I ll definetely opern an ING ISA account!

Thank you very much,
Max

MarkyMarkD

Kazza242 wrote: »

No, I meant:

Some ISA providers pays interest from the day after your old ISA is closed. Interestingly, most, but not all, ISA providers pay interest from the day they receive the cheque. I recall when reading some building society ISA terms and conditions last year, that some delay before they started paying interest. There was a thread on it. Also, some providers pay interest before the cheque has cleared and others don't. It's definitely worth checking this in the terms and conditions of an ISA before actioning a transfer.

Thanks for clarifying. What you've said now, I totally agree with; what you said before was wrong!

Kent Reliance, for example, used to pay interest from the 3rd working day - matching the cheque clearance time - but now pays from date of receipt.

There are probably still providers who pay from cleared date, rather than receipt date, but it's hard work to identify them.

geet

Hello all, I am new to this thread having stuck to my stoozing one. I am a small time stoozer putting aside 3K savings every year with ISAs.

I saved 3K in 2007 and 3K in 2008 with Egg ISA variable that has come down from 6% to 3.55%. I now have another 3K waiting to be put in a ISA. What should I do?

Sorry for being this ignorant but does transfer mean I can transfer the existing 6K to another ISA - how do I then prove it is part of my annual tax free allowance? If I can, do you think I should move it from Egg - I don't see Egg mentioned in this thread, it must be a bad deal! Also where should I take my new pot of 3K?

I see that monthly saving ISA has the highest interest rate - so is it better to keep 3K in a regular savings and transfer £300 every month to get around 7% or does the maths work out the same of having 3K at a lesser rate for 12months?

Appreciate any advice.

geet

PS: just checked - it is 2.05% with egg isa from february 2009!!!

Jestercat

Rates on this one are now down to 2.6% (effective from 1st March) including the 1.5% 12 months bonus.

Has the Natwest ISA interest rate also come down?

Ess-six

Hi Folks

I'm feeling a bit swamped trying to get my head around this.

My husband and I (sorry, don't mean to sound like Her Maj) have finally got ourselves in a position that we can start saving - we've not been in a position to have ISA's until now, but we can invest £3600 each immediately and £3,600 each in the new tax year.

I've read Martins thread and sent for the paperwork to open a Natwest savings account each with a view to starting their 3.51% ISA accounts, but reading the last few posts, I'm now worried that this is the wrong route to take. I'm pretty sure that we won't need to withdraw any of this money but am a bit scared to commit to fixed term.....

Your advice would be appreciated

kingmonkey

Ess-six wrote: »

Hi Folks

I'm feeling a bit swamped trying to get my head around this.

My husband and I (sorry, don't mean to sound like Her Maj) have finally got ourselves in a position that we can start saving - we've not been in a position to have ISA's until now, but we can invest £3600 each immediately and £3,600 each in the new tax year.

I've read Martins thread and sent for the paperwork to open a Natwest savings account each with a view to starting their 3.51% ISA accounts, but reading the last few posts, I'm now worried that this is the wrong route to take. I'm pretty sure that we won't need to withdraw any of this money but am a bit scared to commit to fixed term.....

Your advice would be appreciated

If your scared about fixing then dont - no point worrying.

Important thing would be to open an ISA account and fund them with £3600 before 5th April. If the rate goes down you can transfer - no problem.

Ess-six

kingmonkey wrote: »

If your scared about fixing then dont - no point worrying.

Important thing would be to open an ISA account and fund them with £3600 before 5th April. If the rate goes down you can transfer - no problem.

Thanks for your reply Kingmonkey.

So if the Natwest rate does go down in July, can I transfer then - or can it only be done at the end of the tax year?