Cash ISAs: The Best Currently Available List

cutlass

New to this post lark but here goes.

Looks like you have to lock up your cash for 5 yr to get around 3%, but who knows what isa rates will do in the future ?
Many of these accounts allow withdrawals with a penalty, usually 180 days, down to 120 days.
So this is my plan. Come April will take out a 5yr isa at 2.9%. So let's say 3yrs down the line isa rates shoot up, and I want to transfer out, or I need the cash, I loose 120 days interest on the amount withdrawn. This means 2yrs interest at at the 5yr rate, and yr 3 at around 1.9%, still better than most instant access accounts, and this one also allows transfers in.
So, any flaws in my plan ?

10_66

I thought they'd made this thread a "sticky", and now it's not (or did I just imagine it?).

anna42hmr

10_66 wrote: »

I thought they'd made this thread a "sticky", and now it's not (or did I just imagine it?).

No your not imagining it, there was a sticky, but now the mods seem to have created a sticky which lists this and other isa threads instead of one sticky for each thread

Consumerist

cutlass wrote: »

. . . So this is my plan. Come April will take out a 5yr isa at 2.9%. So let's say 3yrs down the line isa rates shoot up, and I want to transfer out, or I need the cash, I loose 120 days interest on the amount withdrawn. This means 2yrs interest at at the 5yr rate, and yr 3 at around 1.9%, still better than most instant access accounts, and this one also allows transfers in. So, any flaws in my plan ?

Hi cutlass and welcome to the forum.

Sounds ok to me.

Leeds BS is currently offering 3.05% pa for 5 years with a 180-day withdrawal penalty so you could come out after about 18 months with about 2% overall, according to my numbers. This compares with about 1.75% pa available on easy-access.

cutlass

Consumerist wrote: »

Hi cutlass and welcome to the forum.

Sounds ok to me.

Leeds BS is currently offering 3.05% pa for 5 years with a 180-day withdrawal penalty so you could come out after about 18 months with about 2% overall, according to my numbers. This compares with about 1.75% pa available on easy-access.

Should have mentioned 2.9% x 5yrs account was with Newcastle BS.
Just found out what a sticky is. Am I off topic.

Consumerist

cutlass wrote: »

. . . Am I off topic.

Well, it's a bit academic but it might more properly have gone into the discussion thread but you're not way off the topic.

diy1950

Re Leeds 5 yr fixed rate isa

As I understand it, the penalty of 180 days loss of interest only kicks in if you withdraw/transfer more than 25% of the capital. Less than this and the withdrawal/transfer is penalty free.

Am I missing something? If I am understanding this correctly it may be worth a shot

Consumerist

diy1950 wrote: »

Re Leeds 5 yr fixed rate isa

As I understand it, the penalty of 180 days loss of interest only kicks in if you withdraw/transfer more than 25% of the capital. Less than this and the withdrawal/transfer is penalty free.

Am I missing something? If I am understanding this correctly it may be worth a shot

That's the way I understand it too from <Leeds BS web-site>.

diy1950

Thanks consumerist.

In another post by "kidsmugsy" he/she says that if you were to withdraw/transfer after 18 months, the interest rate would have been 2.3% (if I remember correctly).

Maths is not my strong point and i would be interested to know how this was calculated.

Any maths experts?!!!

Consumerist

diy1950 wrote: »

. . . if you were to withdraw/transfer after 18 months, the interest rate would have been 2.3% (if I remember correctly) . . . i would be interested to know how this was calculated.

I make it closer to 2.0%.

On the back of an envelope -

3.05% for 1.5 years yields ~ 4.5%

180 days penalty (say, 0.5 years) will reduce the yeild by 3.05% / 2 or ~ 1.5%

So the yield is 4.5% - 1.5% = 3.0% over 1.5 years i.e. ~ 2.0% pa over the 18 months (1.5 years)

Hope that makes sense..