Cash ISAs: The Best Currently Available List

claire07

Following Consumerist's post, just to warn you that on the M&S site it says the rate for the variable rate Advantage Cash ISA will drop to 2.75% on 11th December. I was interested in this but noticed the drop mentioned on the transfer form.

Consumerist

No mention of the rate change on the page I was looking at. That's banking honesty for you.

Thought it seemed a bit odd to be offering 3% on a variable at the moment.

gull5426

the post office rate of 3.01%, is being taken off from end of today.

edda

As from 12th November, Saga's 1 year fixed at 3% has been withdrawn.

The 3 year fixed offering is now an incredibly low 2.75%.

Same day as the Post Office removed their ISAs. Coincidence - or not?

louiseadav

Kazza242 wrote: »

I've been thinking about your question. The 3.25% rate is only guaranteed until 05/04/2013 (and the 0.5% inclusive bonus is paid for the first year that the account is open.)

Though, I do agree with you that the first option is the best one. If you open the account now you will secure the 3.25% rate until at least the end of the tax year. As competition is fierce in the ISAs market in March/April, it is less likely that Coventry would reduce their rate at that time. If you opened the account now, your bonus rate of 0.50% would run until mid-October next year.

Of course, if a better ISA (which accepts transfers in) became available, you could give the 60 days' notice required and request a transfer.

I see this ISA is still available which seems a good deal as apparently all the other good rates have vanished. I know it's a 60 day notice, but that doesn't seem too bad... worried that the rate will drop after 5 April 2013 but I'm figuring if I'm organised I can give notice 60 days before 5 Apr, then if the rate plummets or is bettered by another ISA in the 'new ISA year' flurry can transfer my money, but if the rate stays good I can leave my money in? Looks like I get 2 weeks to make my mind up, but is there any penalty if I then don't withdraw it? Also unsure if there are any penalties for transfers into another cash ISA if you give 60 days notice - or does the 'no penalty with 60 days notice' just apply to withdrawals (or is a transfer the same thing as a withdrawal)?

Many thanks in advance for any help

Consumerist

louiseadav wrote: »

but is there any penalty if I then don't withdraw it?

You get a window (14 days, I think) in which to withdraw. If you do not withdraw in that window then the notice lapses without penalty.

louiseadav

So will it be OK if I transfer into another ISA that accepts transfers at that point, or will it be classed as 'new money' i.e. part of that years allowance? (The Coventry website states you can 'arrange an electronic payment to your nominated account' - is a 'payment' the same as a 'transfer'?)

Consumerist

louiseadav wrote: »

So will it be OK if I transfer into another ISA that accepts transfers at that point, or will it be classed as 'new money' i.e. part of that years allowance? (The Coventry website states you can 'arrange an electronic payment to your nominated account' - is a 'payment' the same as a 'transfer'?)

It is important that you DO NOT transfer the money yourself.

When you want to transfer the ISA you must get a transfer form from the new ISA manager who will arrange the transfer from Coventry. You will need to advise the new manager not to effect the transfer until your notice period has expired - there is usually such an option on the transfer form.

louiseadav

Thanks Consumerist, I think I get it now. BTW any reason why Martin doesn't mention notice ISAs on his Top Cash ISAs list - anything wrong with them (apart from the notice of course!!!)? This looks a better deal than the fixed rate offers around at the mo'?

Consumerist

I think, in this case, it's because the rate is only guaranteed until 5 April and not for a full year.

BTW - welcome to the forum.