Cash ISAs: The Best Currently Available List

Mickygg

Yes, I believe Clydesdale and Yorkshire are linked.

I don't know on the above interest, but as you say anyone would need clarification as this would make a big difference if you were not getting interest on interest.

stilernin

I have read through the first few posts and have dipped into some of those written over the last few weeks. However, I am feeling more confused.

I have approx £10k over 4 ISA accounts which aren't performing well and am now in a position to put in £5,100 before Apr 5th and £5,100 on/after that date. I won't need to touch any of it within the next 5yrs, although I understand fixing for 5yrs is not necessarily the best way to go.

What is the order of opening accounts and moving etc I need to do? Is there a 'window' of time when old money can be moved? I ask this because I noticed that the Leeds 5yr fixed awards the final interest on 30th April 2015; is this a disadvantage if you want to move at that point?

Your thoughts on this, and any suggestions would be really appreciated.

Kazza242

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.

Hi there,

I'm glad that you've found the list helpful.

I think that you've misinterpreted the new Yorkshire Bank fixed ISA info. They have actually launched two fixed rate ISAs today.

• Issue 2 is a one year fixed rate ISA, paying 3.00% which matures on 31/03/2011.
  
• Issue 3 is a five year fixed rate ISA, paying 5.00%, which matures on 31/03/2015. It pays 5.00% during the entire fixed term until maturity. Just to be clear it pays 5.00% during years 1, 2, 3, 4 and 5 until 31/03/2015.
  

TCA - Yes, Yorkshire Bank and Clydesdale Bank are linked. They are both members of the National Australia Bank Group.

Kazza242

stilernin wrote: »

I have read through the first few posts and have dipped into some of those written over the last few weeks. However, I am feeling more confused.

I have approx £10k over 4 ISA accounts which aren't performing well and am now in a position to put in £5,100 before Apr 5th and £5,100 on/after that date. I won't need to touch any of it within the next 5yrs, although I understand fixing for 5yrs is not necessarily the best way to go.

What is the order of opening accounts and moving etc I need to do? Is there a 'window' of time when old money can be moved? I ask this because I noticed that the Leeds 5yr fixed awards the final interest on 30th April 2015; is this a disadvantage if you want to move at that point?

Your thoughts on this, and any suggestions would be really appreciated.

If you are thinking of transferring your existing ISAs to another ISA provider, the first thing you need to do is check that you won't be penalised for transferring any of your existing ISAs out. For example, if you currently have a fixed rate ISA, it is likely that there will be a penalty should you transfer to another ISA (or ISA provider) before it has matured.

If your ISA(s) are easy access ISAs then it is unlikely that there will be a penalty for transferring to another ISA provider (please do check the terms and conditions of your ISAs first). A transfer can then be initiated by contacting the provider you wish to transfer to - they will handle the transfer for you.

There is nothing to stop you from opening a new ISA now and topping it up to the full subscription limit and arranging a transfer in of your ISAs. Even though you've written that you don't need access to your ISA funds for five years, I personally, wouldn't open a 5 year fixed rate ISA at current rates. A lot can happen in five years and interest rates could be significantly higher by then. Check out the variable rate and fixed rate ISA sections for tranfers in, as well as the variable rate 'new money' ISAs at the top of the list.

Mickygg

Oh thanks for confirming kazza. Sorry for misleading people. 5% in this market has to be worth considering in my opinion but as said above 5 years anything can happen.

MarkyMarkD

Mickygg wrote: »

Yes, I believe Clydesdale and Yorkshire are linked.

I don't know on the above interest, but as you say anyone would need clarification as this would make a big difference if you were not getting interest on interest.

I suspect that they wrote their (generic) key facts document before they designed a long-term fixed rate, and that they mean to pay the interest annually as it says on the main website page. Not very clever mistake, though.

MiserlyMartin

A good idea is to ask the new potential home for your ISA how they do transfers in. Is it by cheque? If so will they backdate the credit to your ISA account to the date written on the check to ensure you do not lose a weeks interest through processing/postal delays??. I asked this question at KRBS and the answer was no. Hence I will not be transferring my money into their ISA even though it is fixed 3.2% instant access until August.

TCA

MarkyMarkD wrote: »

I suspect that they wrote their (generic) key facts document before they designed a long-term fixed rate, and that they mean to pay the interest annually as it says on the main website page. Not very clever mistake, though.

This is my thinking too, but I notice both the CB and YB 5 year products are shown with 4.56%AER (i.e.5% payable at maturity) on the Moneyfacts website

http://moneyfacts.co.uk/compare/savings/cash-isa/transfer/

and the Emoneyfacts news bulletins page also says interest is payable at maturity. https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=193495

I've emailed CB for an answer but if anyone has confirmation from them (or YB) that the 5 year ISA pays interest annually, I'd appreciate a heads up. I've also asked about which form to use for ISA transfers to this account as they previously had specific forms for their 2 different ISAs, and that's where the link takes you on the site. Nothing for the new offering.

It's all clear as mud. Anyone would think the ISA season just snuck up on them....

MarkyMarkD

MiserlyMartin wrote: »

A good idea is to ask the new potential home for your ISA how they do transfers in. Is it by cheque? If so will they backdate the credit to your ISA account to the date written on the check to ensure you do not lose a weeks interest through processing/postal delays??. I asked this question at KRBS and the answer was no. Hence I will not be transferring my money into their ISA even though it is fixed 3.2% instant access until August.

Hardly anyone backdates to the date of the cheque. Why should they? They aren't earning interest until the funds clear with them.

There are three options for when the receiving bank/BS pays interest:

- the date of the cheque (rare);
- the date the cheque is received (rare); or
- the date the cheque clears (most common).

KRBS adopt the middle of the three options. Nationwide (IIRC) adopts the first. Most providers adopt the third which is actually the fairest because it means paying interest from the date they get the value of the money.

Your KRBS account can't be "fixed instant access". I think you mean "fixed".

MarkyMarkD

TCA wrote: »

This is my thinking too, but I notice both the CB and YB 5 year products are shown with 4.56%AER (i.e.5% payable at maturity) on the Moneyfacts website

http://moneyfacts.co.uk/compare/savings/cash-isa/transfer/

and the Emoneyfacts news bulletins page also says interest is payable at maturity. https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=193495

I've emailed CB for an answer but if anyone has confirmation from them (or YB) that the 5 year ISA pays interest annually, I'd appreciate a heads up. I've also asked about which form to use for ISA transfers to this account as they previously had specific forms for their 2 different ISAs, and that's where the link takes you on the site. Nothing for the new offering.

It's all clear as mud. Anyone would think the ISA season just snuck up on them....

Mis-stating the AER on their website would be a serious regulatory breach. It's about time they clear this up! There's a lot of difference between 4.56% AER and 5% AER.