Cash ISAs: The Best Currently Available List

KTF

You can put 3k in a new ISA then transfer over your existing one(s) to another provider as long as you dont add any new money to them.

Edit: The amount of interest depends on the account. For example 3K in Barclays at 6.50 and 9k in Abbey at 5.75% will earn you more than putting 12k in Abbey on its own.

sallycanwait

I have just read all through this thread and learnt a lot - thanks to all - especially Kazza for the work!

However, I am still confused.

If Barclays don't guarantee their rate surely this means it could go down at any time - so doesn't the NS&I one fare better as they guarantee the rate to be above BOE?

Also - for the ISAs you can transfer money into - is a fixed rate one not just one where the rate is guaranteed but one where you are committed to staying with for that period (eg. 1 year)? So while the rate is good now if things changed and a better transfer allowed account comes along, you couldn't then transfer money across?

I have £3k in last year's A&L account to transfer and another £3k new money to find a home for this year. Thinking NS&I or Egg for new money and Northern Rock for transfer - is this sensible?

Kazza242

sallycanwait wrote: »

I have just read all through this thread and learnt a lot - thanks to all - especially Kazza for the work!

I'm glad the info is helping so many people.

sallycanwait wrote:

If Barclays don't guarantee their rate surely this means it could go down at any time - so doesn't the NS&I one fare better as they guarantee the rate to be above BOE?

Yes, you're correct the rate could go down at any time. However, as Barclays only accept 'new money' they have limited the amount of interest that they have to pay out. Therefore, I doubt that they would reduce the rate before the 1 year bonus expires.

sallycanwait wrote:

Also - for the ISAs you can transfer money into - is a fixed rate one not just one where the rate is guaranteed but one where you are committed to staying with for that period (eg. 1 year)? So while the rate is good now if things changed and a better transfer allowed account comes along, you couldn't then transfer money across?

The rate is fixed and you have to keep the money within that ISA for the fixed rate period or you have to pay penalties - usually a number of days loss of interest. It usually isn't worth trying to move it elsewhere during the fixed rate period. Also fixed ISAs usually levy a penalty if you make a withdrawal during the term of the ISA.

sallycanwait wrote:

I have £3k in last year's A&L account to transfer and another £3k new money to find a home for this year. Thinking NS&I or Egg for new money and Northern Rock for transfer - is this sensible?

It sounds pretty sensible, though some economists think that the BOE will increase the base rate again next month to 5.50%. However, it is not certain that higher fixed rate ISAs will become available even if the BOE rate is increased.

Hobo_2

Max £3000, but can be a transfer in

http://www.thecheshire.co.uk/investment-saving-account/individual-saving-account/12-month-fixed-rate-mini-cash-isa-9th-issue.htm

Kazza242

Thanks Hobo. I had noticed the Cheshire ISA, but I chose not to add it to the list because I wanted to add fixed rate ISAs paying 5.85% or above. The 5.75% Cheshire are offering is almost the same as the rates that the best variable rate ISAs are offering. As many economists think that the MPC will be increasing the BOE base rate next month to 5.50%, I think fixing at just 5.75% would be a mistake.

If the variable rate ISAs increased their rates by the full 0.25% then Kent Reliance would be paying 5.96%, YBS 5.90% and Abbey would be paying 6.00% (for balances of £9,000+; their rate guarantee promises to match BOE base rate increases).

mleonard79

It sounds pretty sensible, though some economists think that the BOE will increase the base rate again next month to 5.50%. However, it is not certain that higher fixed rate ISAs will become available even if the BOE rate is increased.

Hi Kazza,

Like others I just wanted to say thanks for your comprehensive list and info - much appreciated :T

I'm toying with the idea of transferring to the Northern Rock Isa for a year - the only thing putting me off is the fact most experts seem to think interest rates will rise again next month. Now if it was just to rise a quarter percent again NR would still be the way to go but if it rises more than once then YBS or Kent Reliance would be best (so long as they pass on the rise of course!) I was just wondering if you or anyone else had read any opinions on whether it's generally perceived that this would be the last rate hike for a while or whether most people think it will keep on rising?? I realise it's all conjecture but having an idea of what the general consensus is makes it easier to decide! Thanks.

Regards

Michelle

Kazza242

mleonard79 wrote: »

Hi Kazza,

Like others I just wanted to say thanks for your comprehensive list and info - much appreciated :T

You're welcome. I'm glad the list has helped so many people.

mleonard79 wrote:

I'm toying with the idea of transferring to the Northern Rock Isa for a year - the only thing putting me off is the fact most experts seem to think interest rates will rise again next month. Now if it was just to rise a quarter percent again NR would still be the way to go but if it rises more than once then YBS or Kent Reliance would be best (so long as they pass on the rise of course!)...

I've been thinking exactly the same thing as you. Many leading economists expect the MPC to increase the BOE base rate to 5.50% next month. The BOE meeting takes place on 9/10 May.

I had been thinking about fixing my existing ISAs (from previous tax years), but if rates rise next month and continue rising it would be a big mistake. I read a couple of articles last week that seemed to suggest that a rate hike in May would be the last with rates falling from end of the year.

However, with inflation running so high and house prices continuing to rise no economist can be certain that rates will not rise further than 5.50% this year. To be safe I'm thinking of fixing part of my ISA savings at 6.00% or above. I will transfer the other part of my ISA savings into a variable rate ISA (from Abbey, Kent Reliance or YBS). That way I can't really lose out.

Abetorius

Hi all,

I'm still confused by all this ISA stuff even after reading the articles and posts, in fact I think I'm even more confused.
Now we are into a new allowance year I'm determined to make the most of it and actually get an ISA but I don't want to jump in and end up with the wrong one.
Can you offer me some advice please?

Currently I earn just slightly more than minimum wage (£175 a week) and have very low monthly outgoings (around £100 a month) plus spending which I spread out over the month by using my credit card, making sure not to accrue interest.
I have an online savings account which I will use to store funds for ISA transfer (and emergency money) saving into it every week where possible.
I would prefer an online accessible account as getting out to a branch with my working hours is often difficult.
I don't have a huge amount to invest up front but could save around £200-250 in the next couple of weeks for it.

This all pretty much rules out: Barclays and NS&I.

The Egg one sounds good to me but they refused me an egg money card (no reason given, not in a bad credit situation either, only have 1 visa card) not sure if they will refuse me because of that.

I would like to get the best return on my money possible.

I'm totally lost with ISA's and I know my savings account (not to mention my current account) is terrible but it's all I have right now.

Any help or pointers to the right places for help would be greatly appreciated.

Thanks in advance

gelato_cat

Hi

I think you've nothing to lose by applying for an Egg ISA. You may have been refused their card for not having borrowed enough in the past, but they shouldn't do a credit search on you for a savings account.

Best of luck

Suze

Abetorius wrote: »

Hi all,

I'm still confused by all this ISA stuff even after reading the articles and posts, in fact I think I'm even more confused.
Now we are into a new allowance year I'm determined to make the most of it and actually get an ISA but I don't want to jump in and end up with the wrong one.
Can you offer me some advice please?

Currently I earn just slightly more than minimum wage (£175 a week) and have very low monthly outgoings (around £100 a month) plus spending which I spread out over the month by using my credit card, making sure not to accrue interest.
I have an online savings account which I will use to store funds for ISA transfer (and emergency money) saving into it every week where possible.
I would prefer an online accessible account as getting out to a branch with my working hours is often difficult.
I don't have a huge amount to invest up front but could save around £200-250 in the next couple of weeks for it.

This all pretty much rules out: Barclays and NS&I.

The Egg one sounds good to me but they refused me an egg money card (no reason given, not in a bad credit situation either, only have 1 visa card) not sure if they will refuse me because of that.

I would like to get the best return on my money possible.

I'm totally lost with ISA's and I know my savings account (not to mention my current account) is terrible but it's all I have right now.

Any help or pointers to the right places for help would be greatly appreciated.

Thanks in advance

Kazza242

Abetorius - I think you should go ahead and apply for the Egg mini cash ISA. I'd be surprised if they rejected you. I wouldn't read too much into being rejected for their credit card, this shouldn't stop you taking out a savings product with them or anyone else. As you aren't applying for credit I don't think you'll encounter any problems. Good luck with it all.