Cash ISAs: The Best Currently Available List

boobbby

innovate wrote: »

You can download the forms for external (and for internal) transfers into Santander ISAs from the web but you cannot do the transfers online.

Quite correct and although I filled in the internal transfer form and took it to the branch. The lady insisted she had later forms and filled the details in again. She then said she had to send them to head office to complete the transfers although we would get the 2.5% rate immediately.

Kazza242

dragilex wrote: »

According to the Santander website the "Santander Direct ISA Saver (issue 1) - 2.50%" ISA can be managed online as well...

I added the info on the Santander ISA before it had officially launched and then updated the links when it was uploaded to the Santander website. I forgot to amend the 'Operated by:' section, which I have amended now.

If you spot anything, please do send me a PM, as I don't always immediately see all of the posts that are made to the thread. Especially at this time of the year, when the list needs pretty much a daily update due to the interest rates changing so frequently. Thanks.

ultrawomble

HSBC Cash e-ISA now only pays 1.69% or 1.59% depending on balance effective from 25/03/2013

http://www.hsbc.co.uk/1/2/savings-accounts/cash-isa/interest-rates

carpy

boobbby wrote: »

Quite correct and although I filled in the internal transfer form and took it to the branch. The lady insisted she had later forms and filled the details in again. She then said she had to send them to head office to complete the transfers although we would get the 2.5% rate immediately.

yes this annoying! i tried emailing the form but with no success

Nessie23

ultrawomble wrote: »

HSBC Cash e-ISA now only pays 1.69% or 1.59% depending on balance effective from 25/03/2013

http://www.hsbc.co.uk/1/2/savings-accounts/cash-isa/interest-rates

Does this apply to new and old ISAs?
If so it's typical HSBC get you in with a good rate and then drop it a few weeks later. Glad I didn't go for it

le_loup

Nessie23 wrote: »

Does this apply to new and old ISAs?
If so it's typical HSBC get you in with a good rate and then drop it a few weeks later. Glad I didn't go for it

Yes it does. I know because I just looked at the link provided. Couldn't you?
The rate has been at 2.75% for a very long time. No question of being sucked in then for them to drop it. If you have only just transferred, it may appear like that but if you've been with them for a long time you have been getting a very competitive rate.

bxboards

innovate wrote: »

Assume:

• you have £5,760 available now
• you can get 3% AER on it in a current account (2.4% after basic rate tax)

Surely if someone had £5,760 available now, it would make sense to do the Santander 123 ISA and get 3% for that?

If one has the money upfront, I can't see how the figures add up, keeping it in a 3% current account vs 3% ISA upfront.

Surely if one has the money upfront, a drip-feed at 4% (2% over the year), is worse than a 3% ISA deposited upfront - you'd gain 3% over the year, vs the 2% which a 4% dripfeed works at over a 12 month period.

marathonic

Just had word that my Santander 123 application has been refused. Was planning to open a Santander ISA but have moved away from that idea now - not because of the current account rejection but because it'll be a couple of months before I have the £2,500 required to open the account.

Instead, I've opened the Tesco ISA at 2.3% with a £1 lodgement. I'll pop £1,000 into that next week when I get paid and reassess the situation when it comes to the time where I can make my first payment using next years allowance.

InsertWittyName

Also looking at the Tesco 2.3% ISAs for me and my missus in the new tax year.

Rockula

innovate wrote: »

Assume:

• you have £5,760 available now
• you can get 3% AER on it in a current account (2.4% after basic rate tax)

You will get £188 interest after 12 months if you dripfeed the 4% ISA. Only @124 of the interest will be paid into the ISA, bringing your ISA balance to £5,884. The other £64 net interest goes into your current account.

If you put your £5,760 as a lumpsum straight into a 2.5% ISA, you get £115.20 in interest after 12 months, bringing your ISA balance to £5,875.20.

Net gain from dripfeeding the Reg Saver ISA is £72.80. This may not sound a lot, but I would definitely take it if I didn't still have my 4.25% Flexclusive ISA for a few months.

If you can find a feeder account that pays more interest (e.g. £2,500 in a 5% AER FlexDirect), you can make even more.

If you dripfeed from a non-interest bearing account, obviously the 4% ISA beats the 2.5% one hands down, anwyay.

Great example and very useful thanks, innovate - these are the exactly the options I'm considering too - but just wanted to point out a small error in the figures in case it helps others with their decision. I reckon you've accidentally used a rate of 2% here for the ISA - at 2.5%, the interest after 12 months would be £144.00, making the net gain from dripfeeding £44.00