Cash ISAs: The Best Currently Available List

The_Fat_el_Hombre

someone wrote: »

Both Natwest and Barclays have had big spend on TV adverting this week for ISAs.

Natwest can do one. just dropped my e-isa from 2.75 to 2%. Moving my money out ASAP if I can find something half decent

carpy

The_Fat_el_Hombre wrote: »

Natwest can do one. just dropped my e-isa from 2.75 to 2%. Moving my money out ASAP if I can find something half decent

same here, just opened one with a transfer thinking i was getting 2.5% but the rate has dropped to 2.25%

J-Greens

Hey all!

I'm a complete newbie to savings and everything despite the fact that I've had an ISA for a year (Without understanding any of it!) and a bank account that I'm pretty sure I'm not getting the most out of it! You can laugh, but I'm happy enough that the money that's there is safe and accessible in an emergancy.

But, I'm looking to cut ties with the bank I've been with since I first created an account in search for better deals and more cash - I'm not greedy, just not as stupid!

I'm looking at either keeping my ISA easy-access but switching for a better rate or merging both my current account (The one where the wage and bills go in and out) and the ISA to that Santander 123 current account which appears to be more beneficial. I haven't a clue which is best - and we're not dealing with huge numbers here - but I'd like to feel like I'm making the most of what I have.

My question is - I keep seeing this 'use it or lose it' quip about ISA's and I haven't a clue what it actually means. When I created my ISA, I transferred cash from one account to that one and simply have left it there, in case of an emergency and earning a bit more on it over time - how exactly can I 'use it' to make sure I don't 'lose it' ?

Ta, J.

innovate

J-Greens wrote: »

My question is - I keep seeing this 'use it or lose it' quip about ISA's and I haven't a clue what it actually means. When I created my ISA, I transferred cash from one account to that one and simply have left it there, in case of an emergency and earning a bit more on it over time - how exactly can I 'use it' to make sure I don't 'lose it' ?

ISAs are just savings accounts, with a nice bonus: you do not pay any tax on your interest. In all other savings accounts, the bank automatically withholds 20% tax from your interest.

E.g. if you earn £100 gross interest in a normal savings account, you only receive £80 of it. The other £20 go to the HMRC.

If your £100 interest is from an ISA, you get the full £100. HMRC gets nothing.

There are, predictably, limits to how much interest you can get tax-free. Everyone has an ISA allowance for each tax year. £5,640 this tax year, £5,760 next. You cannot move unused allowances into the next tax year - - thus the 'use it or lose it'.

Read http://www.moneysavingexpert.com/savings/best-cash-isa#whatis

J-Greens

innovate wrote: »

You cannot move unused allowances into the next tax year - - thus the 'use it or lose it'

The tax bit, I get, but this part is where I'm get lost. Why would you move allowances, since all you're doing is prolonging the inevitable?

I'm looking at Santander, who seem to be offering some of the better rates in all areas? Just a mirage or substance? I've been with the same bank I started with when I was 16 and only now am I looking at other accounts.

If that easy-access ISA is what it says it is, it's as good as I think it is? Then I could swap both accounts to Santander (If they're any good) equivalent and actually make my money grow....:money:

Thanks for the reply!

innovate

J-Greens wrote: »

The tax bit, I get, but this part is where I'm get lost. Why would you move allowances, since all you're doing is prolonging the inevitable?

Sorry, not with you. I said you cannot move allowances. What is "the inevitable"?

J-Greens wrote: »

I'm looking at Santander, who seem to be offering some of the better rates in all areas? Just a mirage or substance?

It's a simple like-for-like comparison. Santander's rates are pretty much the best you can get for new ISAs right now.

J-Greens wrote: »

If that easy-access ISA is what it says it is, it's as good as I think it is?

The easy access ISA will be exactly what the T&Cs say. It's difficult to say whether it is as good as you think it is since you haven't said what you think

J-Greens

innovate wrote: »

Sorry, not with you. I said you cannot move allowances. What is "the inevitable"?

I'm just getting confused myself :think:

Are ISA's are basically a safe - so do people use them like a safe to protect amounts and then after the end of the financial year, take them out and put them somewhere else? Or is it only 5k (or so) in total that's protected?

The cake analogy only works in showing that the cake is protected, it doesn't show how the allowances work.

innovate wrote: »

It's a simple like-for-like comparison. Santander's rates are pretty much the best you can get for new ISAs right now.

Silly me misread the details. I'm looking for an old-cash ISA - perhaps actually going in branch and having a chat would get me a better deal for my ISA, or stuff them and switch?

innovate wrote: »

The easy access ISA will be exactly what the T&Cs say. It's difficult to say whether it is as good as you think it is since you haven't said what you think

Ugh, T&C's - the undisputed fastest way to lose me in jargon and riddles. I'm barely figuring out about these allowances at the moment.

Ugh, this banking malarkey is tough work.

Thanks for replying though!

le_loup

Read this article at the top pf this page:
http://www.moneysavingexpert.com/savings/best-cash-isa
It explains in simple terms what ISAs are are where to find the best.
Don't give because "It's too difficult". It isn't, all it need is a little effort.

michaels

Hmm - risk FD, go with Santander 2.5% for max flexibility or go with 3% rate on 2 year fix and accept loss of interest if withdrawal is required....decisons, decisions. Are we waiting for anyone else to announce new rates before the end of the year?

KTF

J-Greens wrote: »

I'm just getting confused myself :think:

Are ISA's are basically a safe - so do people use them like a safe to protect amounts and then after the end of the financial year, take them out and put them somewhere else? Or is it only 5k (or so) in total that's protected?

The cake analogy only works in showing that the cake is protected, it doesn't show how the allowances work.




Silly me misread the details. I'm looking for an old-cash ISA - perhaps actually going in branch and having a chat would get me a better deal for my ISA, or stuff them and switch?




Ugh, T&C's - the undisputed fastest way to lose me in jargon and riddles. I'm barely figuring out about these allowances at the moment.

Ugh, this banking malarkey is tough work.

Thanks for replying though!

Am ISA is just a savings account but you dont pay tax on the interest. Its as 'safe' as any other savings account provided by a bank.

The 'catch' is that you can only put in so much each year and its a one time thing so if you dont use your allowance for the year then you lose it.