Cash ISAs: The Best Currently Available List

Dustykitten

The thing to remember with the Newcastle ISA is that you have to have the account open until the anniversary (plus make the 9 monthly payments) to get the bonus which is 1.4% on top of the 2% rate. So it doesn't sound ideal for anybody who might want to transfer out funds before the maturity date.

MarkyMarkD

But (a) the rate is variable and (b) the bonus of 1.4% is only payable if you keep the account for a full year.

So it's like a fixed rate account paying 3.4%, except that the rate can be reduced and if it is, you can't afford to close the account because then you'll lose even more.

Sounds like "lose, lose" to me.

Why would you do this rather than a fixed rate account?

Just_landed

Worth a look



http://www.nationwide.co.uk/savings/cash_isa/cash-isa.htm

The_Enforcer

MarkyMarkD wrote: »

Why would you do this rather than a fixed rate account?

If you didn't have a lump sum at the beginning of the financial year, but were able to put money aside monthly during the course of that year and were saving for a purchase the following financial year or beyond?

That said, this is now beaten by the A&L instant access 3.5% ISA.

uiui

thanks for all the comments-had thought of transferring a maturing[fixed] isa now and doing the regular payments for the new isa in april-i did fancy having an easy access one this year but considering the comments i'll not hurry into anything.
thanks again.

MarkyMarkD

The_Enforcer wrote: »

If you didn't have a lump sum at the beginning of the financial year, but were able to put money aside monthly during the course of that year and were saving for a purchase the following financial year or beyond?

That said, this is now beaten by the A&L instant access 3.5% ISA.

But most people referring to it actually intend to transfer in as much as possible, and subscribe as much as possible, whilst paying in the minimum possible monthly amount to qualify.

And for those people, it is really not the best deal IMHO.

The Santander/A&L one is new money only, so doesn't fit the bill for those same people either.

analyst_2

Keep an eye open in the coming weeks for a new ISA from Barclays, who have had some good deals in the past.

Reputed to be positioned to beat other top paying ISA's, but let's wait and see huh?

MarkyMarkD

They've had good deals except that:

(a) they are only ever for current year subscriptions; and
(b) they are always short-term good rates which then revert to ridiculous rates like 0.1%.

Fine if you stay on the ball. Rubbish otherwise.

Mickygg

Great page Kazza, very helpful, especially as its kept so up to date.

Bit of a FYI for everyone - The Yorkshire bank addition at 5% for 5 years actually works out as 4.6% per year over the duration, as year 1 is fixed at 3%, then up to 5% for years 2-5.

TCA

Mickygg wrote: »

Great page Kazza, very helpful, especially as its kept so up to date.

Bit of a FYI for everyone - The Yorkshire bank addition at 5% for 5 years actually works out as 4.6% per year over the duration, as year 1 is fixed at 3%, then up to 5% for years 2-5.

I saw the Clydesdale Bank version on their website, which I presume to be the same, and I read it as 2 different issues. Apologies if YB is offering a different product:

Issue 2 guaranteed interest rate of 3.00% Tax-free/AER until 31 March 2011
Issue 3 guaranteed interest rate of 5.00% Tax-free/AER until 31 March 2015

http://www.cbonline.co.uk/personal/savings/tax-efficient-savings/cash-isa-fixed-rate-bond/cash-isa-fixed-rate-bond

What confuses me is that CB (on the page above) say that for issue 3, interest is credited annually but when you read the Key Features pdf, it says this:

"Terms applicable to a Cash ISA – Fixed Rate Bond only

(vii) Interest is calculated daily on the cleared balance in the Cash Account on that day and is credited to the Cash Account at Maturity, or on account closure."

Makes a big difference to the overall interest on a decent sum.