Cash ISAs: The Best Currently Available List

stevec59

Question, as the rates change does the Firts post here get updated?

I have had a look at a few and none of them seem to have increased the interest since the BoE rise.

Advice please.

Thanks

Steve

Kazza242

stevec59 wrote: »

Question, as the rates change does the Firts post here get updated?

I have had a look at a few and none of them seem to have increased the interest since the BoE rise.

Advice please.

Thanks

Steve

Steve - The first post is continually updated by me, the OP. As each provider announces new rates, the rates displayed on the first post will be updated to reflect this.

So far, only one provider on the list, NS&I, have increased (or announced an increase) to their ISA rate. You'll see that the rate is now showing as 6.05% and has a :starmod: NEW RATE :starmod: next to it. The old rate was 5.80%.

We'll have to wait for the other ISA providers to announce what they intend to do. All rate rises usually come into effect from the 1st of the month following a BOE base rate increase, so by June 1st on this occasion.

stevec59

Thanks Kazza, I wasn't sure if it was possible to update the first post, but obviously it is.

Thanks again

Steve

phlash

"Abbey Direct ISA - 6.00% w.e.f 1/6/2007 (for balances of £9,000+) NEW RATE
Rate guarantee? No. Minimum deposit: £9,000 (to qualify for the higher rate).
Operated via: Post, Telephone and Internet.
Notes: 5.75% is paid for total balances between £1 - £8,999. Incl. 0.50% variable rate bonus until 01.05.08. Rates guaranteed to match any increase in BOE base rate until 01.05.2008."

Abbey have offered me this deal, to transfer my old Postal ISA with them to this one. The postal ISA was only earning 5.25%. I just need to clarify a few things...

They said on the phone I would get 5.75%, and 6.25% for balance above £9000. Am I to assume that the 0.5% bonus will be taken away as at 01.05.08, meaning my rates would go to 5.25% and 5.75%? Also, I'm guessing that if the BOE raise another 0.25%, which I suspect they will in coming months, then Abbey won't pass this on as their rate would already be 5.75% matching the BOE.

The 6.0% that you've quoted Kazza, is that with reference to the lower or upper (above £9000) rate? Since the advice on the phone today seems to differ. Cheers.

jem16

Abbey is currently at 5.75% for balances of over £9,000. It's due to go up on 1st June to 6% not 6.25%.

The 0.5% bonus will go on 1st May 08. The recent BOE rise was passed on by Abbey which is why it's going from 5.75% to 6%.

I think someone on the phone has given you duff information.

phlash

Rang Abbey again. This time, two of their advisors could only tell me that the Interest rate was 5.5% and 5.75% for their Direct ISA, but could not confirm that they would be going to 5.75% and 6.0%.

They did say though, that following a BOE raise in rates, their rates usually follow on the first of the next month.

Out of Interest therefore, Kazza, where did you get your information from in order to be so up to date?

Are there any transfer out policies in this ISA. I.e. trap you in with the 0.5% bonus and then dont let you out too easily when 01.05.2008 comes around after the rates drop?

jem16

phlash wrote: »

Rang Abbey again. This time, two of their advisors could only tell me that the Interest rate was 5.5% and 5.75% for their Direct ISA, but could not confirm that they would be going to 5.75% and 6.0%.

They did say though, that following a BOE raise in rates, their rates usually follow on the first of the next month.

Out of Interest therefore, Kazza, where did you get your information from in order to be so up to date?

From a previous Kazza thread

http://www.easier.com/view/Finance/Savings/Accounts/article-116448.html

Are there any transfer out policies in this ISA. I.e. trap you in with the 0.5% bonus and then dont let you out too easily when 01.05.2008 comes around after the rates drop?

You can transfer out whenever you want with no penalty.

Kazza242

phlash wrote: »

Abbey have offered me this deal, to transfer my old Postal ISA with them to this one. The postal ISA was only earning 5.25%. I just need to clarify a few things...

They said on the phone I would get 5.75%, and 6.25% for balance above £9000.

From June 1st, the Direct ISA rate will pay 6.00% for total ISA balances of £9,000 and above. If your ISA had £9,001 in there you would get 6.00% on the whole balance. For total balances from £1 - £8,999 you would receive 5.75%.

phlash wrote: »

Am I to assume that the 0.5% bonus will be taken away as at 01.05.08, meaning my rates would go to 5.25% and 5.75%?

Yes, the 0.5% bonus will be removed from 01.05.08, so if BOE base rate remains at 5.50% in May 2008, the rate will fall to 5.50% for £9K balances and above and 5.25% for total balances from £1 - £8,999.

phlash wrote: »

" Also, I'm guessing that if the BOE raise another 0.25%, which I suspect they will in coming months, then Abbey won't pass this on as their rate would already be 5.75% matching the BOE.

Abbey guarantee to match any increase in BOE base rate until May 1st 2008, so if the BOE base rate does rise again by e.g. 0.25% to 5.75% Abbey will have to increase their rate to 6.25% for balances totalling £9K or above and 6.00% for balances totalling £1 - £8,999.

phlash wrote: »

The 6.0% that you've quoted Kazza, is that with reference to the lower or upper (above £9000) rate? Since the advice on the phone today seems to differ. Cheers.

The 6.00% rate currently refers to balances totalling £9,000 or above. The Abbey advisor you spoke to doesn't seem to know what he/she is talking about. The rates I have quoted in my original post and this one are correct.

phlash

Kazza242 wrote: »

From June 1st, the Direct ISA rate will pay 6.00% for total ISA balances of £9,000 and above. If your ISA had £9,001 in there you would get 6.00% on the whole balance. For total balances from £1 - £8,999 you would receive 5.75%.

Thanks very much for the in depth reply.

I was under the impression that you got 5.75% for the balance between £1-£8999 and then got a rate of 6.0% for anything over £9000.

To hear that I would receive 6.0% for the whole balance because I have greater than £9000 is very good news.

Thankyou.

raemon

thats some good facts there kazza.

can somebody please help my little prooblem, ive just graduated and am starting to save with my new job (i wish i found this site before uni, damn), i am going to use the fountain strategy (i think i get the idea of it) to do this, but can not find a good ISA.

i want a ISA with a local branch as i dont like to use online banking and telephone, does anybody know which banks at the moment have good rates of ISA'S??? I am currently with halifax, and there are also barclys, alliance and leicester, hsbc and abbey national local in my area.

i know i have just missed the offer by barcleys.

will appreciate any help, thank 4 reading

rae