Cash ISAs: The Best Currently Available List

Lady_K

I have an ing direct ordinary account and was thinking of getting the isa. Can I put money in at any time and take it out at anytime without pentalties? The ing site is really slow at mo so I cant get the info from there.

Also whens the last day I can set an ing account up as I want to arange a transfer today from my bank to my ing so thats going to take prob 3 or 4 days then I have to send it to the ing isa. I wasnt going to open the isa though till the day the funds actually get into my ordinary ing as the 6 months higher interest starts from the day you open it will this be ok?

Might be a daft question but can you keep money in for the first 6 months then take it out if a better interest rate comes up somewhere?

gil13

Is the Barclays cash beater ISA open to this current tax year allowances only or is also for next years 2007-08, not very clear. Can anyone confirm.

shaggy99

Hi all,
Please be aware that the interest rate of this ISA account starts at 6.5%AER. However, it reverts to 6.31% after the first withdrawal. :think:
Therefore this could be a big catch potentially for lot of people out there whom are opting for this ISA account then making an withdrawal later on or just simply were misleaded by the 6.5%AER advertised previously.
Having said that, 6.31% is still a good rate at the moment.

This info is verified by a Barclay branch ISA advisor and also by the Barclays ISA account hotline.

My apologies if someone has already pointed this out!

Barclays Tax Beater Cash ISA Summary:
1. 6.5% or 6.31% AER for the 1st 12 months.
2. You can manage your account in branch or over the phone (therefore not an online account)
3. No existing ISA transfer in is allowed.

Correct me if I'm wrong, I think they only added the 6.31%AER catch recently and they also make this rather ambiguous. I couldn't find any explanation regarding this in t&c online or printed leaflets.
You may also find there are older and newer version of the "5 great money saving deals"
leaflets in your local branch, the 6.31% only appears in the newer revision, which has a red banner reads "LATEST OFFER INSIDE" on the top right corner!

I hope this helps you to make an informed decision.

Henry

ED

Henry, thanks for being thorough.

Kazza242

Lady_K wrote: »

I have an ing direct ordinary account and was thinking of getting the isa. Can I put money in at any time and take it out at anytime without pentalties?

Yes, you can. From the ING Direct website:

Will I get charged for moving money out of my ING Direct Cash ISA?
With ING Direct you are able to move your money in or out of your Cash ISA without being charged.

Lady_K wrote:

Also whens the last day I can set an ing account up as I want to arange a transfer today from my bank to my ing so thats going to take prob 3 or 4 days then I have to send it to the ing isa. I wasnt going to open the isa though till the day the funds actually get into my ordinary ing as the 6 months higher interest starts from the day you open it will this be ok?

If you are planning on opening the ING ISA for this tax year 2006/07 then you have until Thursday April 5th 2007. You'll need to transfer the money today for it to be there in time. Personally I would open it no later than Wednesday if I were you to ensure that you make it in before the end of the tax year.

Lady_K wrote:

Might be a daft question but can you keep money in for the first 6 months then take it out if a better interest rate comes up somewhere?

Yes, you can transfer out after the 6 months (and anytime during the year).

Kazza242

gil13 wrote: »

Is the Barclays cash beater ISA open to this current tax year allowances only or is also for next years 2007-08, not very clear. Can anyone confirm.

It is available for both 2006-07 and 2007-08. When you start the online application form there are two checkboxes available so that the customer can select the tax year that they wish to make their investment.

Lady_K

It says in the ing account that my funds will be in there by weds but I just thought they usually hold on to them for some days before you can withdraw money out again after youve put it in is it 10 days? I wonder if this still counts as its going into the ing is rather than going out of the ing account, do you still think they will make me wait to move it to the isa?

Kazza242

shaggy99 wrote: »

Hi all,
Please be aware that the interest rate of this ISA account starts at 6.5%AER. However, it reverts to 6.31% after the first withdrawal. :think:
Therefore this could be a big catch potentially for lot of people out there whom are opting for this ISA account then making an withdrawal later on or just simply were misleaded by the 6.5%AER advertised previously.
Having said that, 6.31% is still a good rate at the moment.

The 6.31% rate quoted is the gross rate of interest, you would receive this rate after one year, if you withdrew the interest as it was credited each month. By leaving the interest in the ISA - you earn interest on your interest as well on the original investment - which gives you an overall rate of 6.50%.

This principle applies to any account paying monthly interest. This is not a drawback of having a monthly interest paying account.

If you withdraw the interest as it is credited each month, there is no opportunity to earn interest on it, as you will have removed it from the account. E.g. I have a Coventry First account paying 5.60% gross and 5.85% AER. If I keep the interest in the account I earn 5.85% per annum. If I withdraw the interest each time it is credited to my account then I earn 5.60% interest per annum.

Shaggy99, it isn't your fault. Barclays should have explained it properly.

shaggy99

Hi Kazza,
Thanks for clarifying!

Henry

Kazza242

Lady_K wrote: »

It says in the ing account that my funds will be in there by weds but I just thought they usually hold on to them for some days before you can withdraw money out again after youve put it in is it 10 days? I wonder if this still counts as its going into the ing is rather than going out of the ing account, do you still think they will make me wait to move it to the isa?

Yes, that right. Funds usually need to have cleared before you can make a withdrawal. However, as the funds will be staying within ING it may not apply here. I would check this with them on 0845 603 8888.