Cash ISAs: The Best Currently Available List

curlygirl1971

tesuhoha wrote: »

Hi

I've got an ISA with Barclays. Its the Golden ISA Issue 3 which I opened in 2011. The balance at present is £5614 and according to the website the interest rate is 2.2%. I am getting around £9 per month interest. I have the option to transfer this to a new Barclays ISA but the interest rate offered is 2.10% I think. I am not sure what to do. Will the interest rate of my current ISA drop after April? If I transfer will I be able to add to the savings. I don't really understand ISAs to be honest. If I keep the money in the same account will I be able to add to that?

According to Barclays website this ISA interest rate 'is guaranteed to follow changes to the Bank of England Base Rate until 1st March 2012.' The Base Rate hasn't changed since early 2009 so that's why there has been no movement on your interest rate. Their website is unclear as to what happens after 1st March - although it does say that no future interest rate changes are planned for this account - I guess this could change at any point though and its likely to go down rather than up!

You can stick with Barclays but there is also no harm in changing to another provider. Take a look at Kazza's first post on this thread to get an idea of rates. You can get better than 2.1%. Cheshire BS for instance do 2.5% instant access. Or if you don't need access to the money for say 3 years you could get 3% at the Halifax.

Yes you can add to your pot of money - upto the tax-year limits. If you are going to transfer the money to a fixed rate account then it is likely that you will need to add to it before you fix.

Consumerist

curlygirl1971 wrote: »

According to Barclays website this ISA interest rate 'is guaranteed to follow changes to the Bank of England Base Rate until 1st March 2012.

Are you sure you've got the Issue 3 data? From Barclays website :-

Golden ISA – Issue 3 accounts opened between 7 March 2011 and 15 May 2011 earn an introductory bonus of 1.00% tax-free interest pa, which is not included in the rate quoted above. The bonus is payable for 12 months from the date the account was opened, after which time the rate will reduce accordingly.

curlygirl1971

Hi

Yes pretty sure. If you look where it says that about the bonus there is a line that says 'this product is eligible for the Barclays Rate promise'

http://www.barclays.co.uk/Savings/GoldenISAIssue3/P1242592586403

Barclays Rate Promise
The interest rates on Everyday Saver, Golden ISA – Issue 3, Barclays Children's Savings, e-savings and e-Savings Reward accounts will follow the amount of any changes (up or down) in the Bank of England Bank Rate until 1 March 2012.
As part of this promise, any upward changes will be reflected in your interest rates within 30 days of the Bank of England announcement, and we will give you at least 60 days' advance personal notice of any downward changes in your interest rate following a change in the Bank of England Bank Rate.


Bit confusing / misleading but think I read it correctly.

curlygirl1971

I always keep my eye on this thread and view Kazza's updates enthusiastically but at the moment am constantly sniffing round here.

I have a couple of Cash-ISA pots.

2 fixed accounts earning 3.65% and 3.70%. One of them matures in July and am kicking myself for not fixing for longer

I also have an instant access ISA with Santander (Direct Issue 9) currently paying 3.3%. That rate isn't guaranteed and in anycase the bonus period comes to an end in May. Correct me if I'm wrong but I'm assuming that rates will poorer in May than they are now.

As I don't need access to all of the money held in that pot I think I'll transfer some of it to a fixed (Halifax 3 year 3.0%) and keep some in an Instant access....the balance will only be a couple of £k, I doubt I'll be adding to it and I may need to dip into it. But am not sure where yet.

I guess I'm hoping something better might pop up in next couple of weeks with Santander or Halifax (who I have current accounts and therefore online banking already set up) - it just makes life easier. If not then I'll look at Cheshire BS and their 2.5% variable/instant access account. I'm sure I saw a 2.5% at Santander a week or so ago but now it's 1.75% so it looks as if rates have dipped again and I missed the boat.

Perhaps it sounds daft removing it from an account currently earning 'good' interest but I think I'm better doing this in the longer run.

curlygirl1971

Consumerist wrote: »

According to <Barclays website> the current rate on the Golden ISA issue 3 is 2.22% .................

Sorry Consumerist! Didn't realise you'd already replied. 2nd time I've done that to you

Alex92_2

curlygirl1971 wrote: »

.

2.5% is still at santander but its 2 year fixed.

Why put money into 3 year ISA fix with halifax when you can put money into 4% (after tax) Nationwide Accounts, or other accounts (such as Lloyds vantage 4% if you got that then, whcih pays 0.2% higher than halifax ISA til October 31st after tax)?

For the sake of having instant accessibility to my money, i'd rather stick it in (worst case scenerio) 3% BoS, Vantage or Santander 123 Accounts which after tax pay 2.4% interest (0.6% lower than locking it up for 3 years). Also, who knows, next year may bring better ISA rates out.

0.60% (difference between 3% and 2.4%) of £5760 is £34.56 a year, so not really that much of a loss imo.

I'd consider 3 year fix if i had quite a large capital in ISA pot, but then if I had a pot over £30-40K i'd put it in Natwest or First Direct ISAs for a year.

Worth a thought.

curlygirl1971

Alex92 wrote: »

2.5% is still at santander but its 2 year fixed.

Why put money into 3 year ISA fix with halifax when you can put money into 4% (after tax) Nationwide Accounts, or other accounts (such as Lloyds vantage 4% if you got that then, whcih pays 0.2% higher than halifax ISA til October 31st after tax)?

For the sake of having instant accessibility to my money, i'd rather stick it in (worst case scenerio) 3% BoS, Vantage or Santander 123 Accounts which after tax pay 2.4% interest (0.6% lower than locking it up for 3 years). Also, who knows, next year may bring better ISA rates out.

0.60% (difference between 3% and 2.4%) of £5760 is £34.56 a year, so not really that much of a loss imo.

I'd consider 3 year fix if i had quite a large capital in ISA pot, but then if I had a pot over £30-40K i'd put it in Natwest or First Direct ISAs for a year.

Worth a thought.

Thanks Alex.

Would rather keep the tax-free wrapper for the long term. The current pot of money I'm talking about is £12k and if I take it all out it would take me (based on current limits) 3 tax years to pay back in and it would be 2 years before I could pay in any additional money.

Some of it I will keep as instant access (replacing car, wedding) but the bulk of it I could fix. I have other instant access savings placed elsewhere (Savings accounts, current accounts) but I have been looking at the Nationwide 5% gross as a new home for some of that.

Might consider fixing for only 2 years and look at the Santander 2.5% like you said. Never been keen on fixing for 3.....although it's currently working against me.

I guess another thought is waiting until all accounts have matured, clubbing them together and enabling me to get better rates due to high opening balance (like the First Direct one)......

Cheers

tesuhoha

curlygirl1971 wrote: »

According to Barclays website this ISA interest rate 'is guaranteed to follow changes to the Bank of England Base Rate until 1st March 2012.' The Base Rate hasn't changed since early 2009 so that's why there has been no movement on your interest rate. Their website is unclear as to what happens after 1st March - although it does say that no future interest rate changes are planned for this account - I guess this could change at any point though and its likely to go down rather than up!

You can stick with Barclays but there is also no harm in changing to another provider. Take a look at Kazza's first post on this thread to get an idea of rates. You can get better than 2.1%. Cheshire BS for instance do 2.5% instant access. Or if you don't need access to the money for say 3 years you could get 3% at the Halifax.

Yes you can add to your pot of money - upto the tax-year limits. If you are going to transfer the money to a fixed rate account then it is likely that you will need to add to it before you fix.

Thanks. I am waiting to see how much Santander are going to offer. Am thinking of transferring the ISA but putting all fresh savings this year into the Nationwide current account which is advertising 5% interest for a year for in credit customers. The only stipulation I can see is that you pay in £1,000 per month. I can pay that amount in and then withdraw some of it.

Consumerist

tesuhoha wrote: »

Am thinking of transferring the ISA but putting all fresh savings this year into the Nationwide current account which is advertising 5% interest for a year for in credit customers.

. . . then transfer the proceeds into a 2013/14 ISA just before 5 April 2014. Sounds like a good plan. There may be better ISA rates around by then.

Alex92_2

curlygirl1971 wrote: »

Thanks Alex.

Would rather keep the tax-free wrapper for the long term. The current pot of money I'm talking about is £12k and if I take it all out it would take me (based on current limits) 3 tax years to pay back in and it would be 2 years before I could pay in any additional money.

Some of it I will keep as instant access (replacing car, wedding) but the bulk of it I could fix. I have other instant access savings placed elsewhere (Savings accounts, current accounts) but I have been looking at the Nationwide 5% gross as a new home for some of that.

Might consider fixing for only 2 years and look at the Santander 2.5% like you said. Never been keen on fixing for 3.....although it's currently working against me.

I guess another thought is waiting until all accounts have matured, clubbing them together and enabling me to get better rates due to high opening balance (like the First Direct one)......

Cheers

If you have the funds somewhere, why not sign up to HSBC 2.75% (think its over £15K). Open that account, deposit £3K now, then deposit further £2.5K or so (to make 5760) before April 5th 2014. It's only 1 year, pays .25% over Santander and only .25% lower than FD or Halifax (3 year). Not bad at all imo.

Because of the shuddy rates and me only opening up an ISA (regrettably) this year and only having £5640 to play with. I think I will open Nationwide 5% acount, put £2500 in, let it get 4% (after tax) interest on it over the year (much better than 2.50% Cheshire BS ISA- currently best for me). Then come March time, will add £5760 and hope for better interest rates, or failing that, atleast having a higher capital and hopefully unlocking some of the better interest rates if its anything like this year (I could go for 2.75% with HSBC).

For now, if I put it in BoS, 123 or vantage, 3% after tax is 2.4%, which is only 0.1% lower than the best rate ISA for me. For the sake for £5.76 a year, would rather have it in one of the 3% accounts.