Cash ISAs: The Best Currently Available List

Mithos

slinga wrote: »

Why not increase the 50k to 100k then.

Wouldn't that improve confidence?

The 50k comes from the currently operational BS and Banks. They have to set aside provisions in case its needed. Those provisions can't be used by the BS or bank in normal ways, so in a crude sense its dead money. At least that's my take of the FSCS. Someone might have a better answer as to why its not increased.

I also remember reading when Icelandic melted all the UK banks and BS had to shell out part of their profits to cover what the government had guaranteed, if the guarantee was too high and a large bank failed completely, perhaps it would cause a domino effect.

I only save 50k in each place because no one can be 100% safe. Its unlikely to ever happen, but it would be a nightmare to have to look back on that sort of mistake in hindsight.

Kazza242

snowgo wrote: »

As I live within 25 mile of stockport, the idea that vernon are offering 3.25% sounds really good. But clicked through to their site and can only find a fixed rate bond (non-isa) at 3.25% which wouldn't give the tax advantage. Their cash isa is 1% and optimisa is 1.5% up to £25,000. Unless I've missed an isa somewhere on their site?

I've been waiting for Vernon Building Society to update their website, as they did not have a direct link to the fixed ISA - they only listed the interest rate for it.

However, they updated their website today. Here is the direct link to the ISA. I have added this link to the list also.

purplestar133

I notice the A&L 1 year fixed rate ISA notes 'fixed until 1/2/2011'. If I applied now does that mean I would be committed to that ISA until that date, or is the commitment a year from the date the ISA is set up?

I did have a variable rate ISA with A&L a few years ago and it took forever to set up and eventually transfer out of. Does anyone know if A&L in particular are slow in the application/transfer process or was it just as it was near to the tax year start/end?

If they still take ages I might opt for Julian Hodge. For the sake of 0.05% I would prefer better customer service and speedier service! What do you think?

boobbby

purplestar133 wrote: »

I notice the A&L 1 year fixed rate ISA notes 'fixed until 1/2/2011'. If I applied now does that mean I would be committed to that ISA until that date, or is the commitment a year from the date the ISA is set up?

I did have a variable rate ISA with A&L a few years ago and it took forever to set up and eventually transfer out of. Does anyone know if A&L in particular are slow in the application/transfer process or was it just as it was near to the tax year start/end?

If they still take ages I might opt for Julian Hodge. For the sake of 0.05% I would prefer better customer service and speedier service! What do you think?

My wife like all her eggs in one basket which is her A & L accounts. No real problems apart from the changing interest rates which occur at regular intervals. So if your happy to keep changing your savings accounts then it is ok. At least you can use the internet to keep an eye on the accounts unlike Northern Rock.

MarkyMarkD

purplestar133 wrote: »

I notice the A&L 1 year fixed rate ISA notes 'fixed until 1/2/2011'. If I applied now does that mean I would be committed to that ISA until that date, or is the commitment a year from the date the ISA is set up?

I did have a variable rate ISA with A&L a few years ago and it took forever to set up and eventually transfer out of. Does anyone know if A&L in particular are slow in the application/transfer process or was it just as it was near to the tax year start/end?

If they still take ages I might opt for Julian Hodge. For the sake of 0.05% I would prefer better customer service and speedier service! What do you think?

Fixed until 1/2/2011 means what it says - it's not really a one year fix, it's a fix till a fixed date.

MarkyMarkD

Mithos wrote: »

The 50k comes from the currently operational BS and Banks. They have to set aside provisions in case its needed. Those provisions can't be used by the BS or bank in normal ways, so in a crude sense its dead money. At least that's my take of the FSCS. Someone might have a better answer as to why its not increased.

I also remember reading when Icelandic melted all the UK banks and BS had to shell out part of their profits to cover what the government had guaranteed, if the guarantee was too high and a large bank failed completely, perhaps it would cause a domino effect.

I only save 50k in each place because no one can be 100% safe. Its unlikely to ever happen, but it would be a nightmare to have to look back on that sort of mistake in hindsight.

The FSCS doesn't work like that, at least not currently. There is no forward-funding, and no provisioning in advance of losses occurring. So, the impact of the £50k limit is to slightly - but not particularly materially - reducing the total exposure of the banks & building societies to each others' liabilities.

The issue of a large bank failing and consequently stuffing the rest of the industry is very valid, notwithstanding the £50k limit. If (say) HBOS had gone down, its total liabilities would have swamped the FSCS's members' ability to pay.

I don't agree that the limit should be increased; I don't agree that the government should have bailed out those who had invested more than the £35k (as it was at the time) in Icelandic banks. The point of the FSCS should be a safety net for ordinary savers. People who have loads of money should take responsibility for their own actions - and if someone was mental enough to invest £1m in Icesave, when the rates of return on offer were way above market rates, they should have realised there was a risk involved in doing so.

All that's happened now, is that the government has sent out a message "don't worry about risk, simply invest where the returns are greatest" ... which actually reinforces the sort of behaviour which led to the problems in the first place.

purplestar133

boobbby wrote: »

My wife like all her eggs in one basket which is her A & L accounts. No real problems apart from the changing interest rates which occur at regular intervals. So if your happy to keep changing your savings accounts then it is ok. At least you can use the internet to keep an eye on the accounts unlike Northern Rock.

Yes, but their internet banking is rubbish! It's not clear and takes too long to update. But you're right in that it's better than nothing!

MarkyMarkD wrote: »

Fixed until 1/2/2011 means what it says - it's not really a one year fix, it's a fix till a fixed date.

Thanks MarkyMark, I'll bear that in mind. I hadn't come across that before. I suppose it's only one month extra than what I'm looking for. A bit less than a month actually.

MarkyMarkD

It's far more common on mortgages, than on savings accounts, but West Brom (for example) seem to have fixed end dates on all their fixed savings accounts.

purplestar133

I've not heard of United Trust Bank before. Does anyone have any experience with them and any feedback?

Baldur

purplestar133 wrote: »

I've not heard of United Trust Bank before. Does anyone have any experience with them and any feedback?

I hadn't heard of UTB either - the bank is FSA authorised 204463 - United Trust Bank Limited , a web search brought up this thread from late 2008 which may be of interest.