Cash ISAs: The Best Currently Available List

diy1950

This is starting to sound like the Nationwide Flexclusive ISA saga.

cutlass

Looking on Leeds BS website, the 5yr deal seems to have to have disappeared.

Sorting out T&C perhaps .

brewerdave

Principality 2 yr fixed rate deal (issue 116) @ 2% has been superceded by issue 123 @ 1.85%:(
..the only way is down at the moment!!

chile_paul

Hi,

I've just had notification from Virgin Money that they are cutting the interest paid on their Online e-ISA to 1.5% and as a result I'm now looking around to see if their is a better deal out their.

Interestingly I've noticed that Virgin also have a 5 year fixed rate ISA which pays 3% fixed until 2019. Normally I'd be very nervous about locking my money away for this long given that the general consensus is that interest rates are likely to start rising again over the next couple of years. However given that the penalty for early withdrawal is only 180 days interest on the amount withdrawn, the effective interest rate on that amount would only drop down to 1.5% which is no worse than the current rate payable on the instant access ISA - in which case I can't lose compared to keeping my money in the instant access version. Have I got that right or am I missing something?

I'm unlikely to need to withdraw any of that money for any reason other than a better deal being available elsewhere so I see this as a sensible option unless anybody thinks I've missed anything?

bsms1147

They cottoned on

https://forums.moneysavingexpert.com/discussion/comment/64685017#Comment_64685017

Vortigern

The remainder of this post is now out-of-date. Santander will announce a new 2-year deal on 10 March 2014

[STRIKE]I haven't seen this mentioned elsewhere, although it's nothing to shout about.

2 Year Santander Select ISA - an exclusive offer for Santander Select customers

Accepts transfers in. If Santander release a higher interest rate up until 31 May 2014 on a 2 Year Fixed Rate cash ISA, they will increase the rate on this cash ISA to match. Interest will then be paid at this new tax free interest rate from the date of the change.

Guaranteed interest rate of 1.80% AER tax free (variable) for 2 years

Transfer applications must be received within 14 days of opening.
Deposits must be made within 14 days of account opening.
No subsequent additional deposits allowed.
Partial withdrawals are not allowed during the fixed term.
Early access allowed subject to an early closure charge equivalent to 120 days' interest.
Matures 1st April 2016.
At maturity the account reverts to variable rate ISA Saver[/STRIKE]

innovate

Bit of an insult to Santander Select customers, 1.8% AER, isn't it, when they can get half a dozen 2 year ISAs at 2% and more, without having to be anything "select". I fear Santander are losing their way.


Though might mean their ISA-season offer will be a 2-year 2% AER ISA.

zagfles

cutlass wrote: »

Looking on Leeds BS website, the 5yr deal seems to have to have disappeared.

Sorting out T&C perhaps .

Or they've withdrawn it - these things are usually time limited offers till they've got the money they want

zagfles

the_seer wrote: »

I did ask specifically if the penalty would be on the original sum invested or on the 75% remaining, and was told it would be on the actual amount withdrawn.
I was given the impression that they were just quoting from the T&Cs though.

But is it the actual total amount withdrawn or the amount withdrawn above 25%? For instance if you have £10,000 and withdraw £2,500, you'll pay no penalty. That's clear from the T&Cs. But if you then withdraw another £1000 , do you lose interest on the latest withdrawal, ie £1000, or on the total amount withdrawn ie £3,500.

The T&Cs say the loss of interest will be on the amount withdrawn if you exceed the 25% limit, it doesn't say whether it's the total amount withdrawn or the amount withdrawn in that particular withdrawal.

Consumerist

The more I read this feature, the more I become convinced that when the total amount withdrawn/transferred exceeds the 25% allowance, the entire amount withdrawn/transferred becomes subject to the penalty.

From the 2-year fixed-rate ISAs currently still offered by <Leeds BS> :-

Withdrawals/transfers can be made of up to 25% of your capital investment prior to maturity (31 March 2016) without notice or loss of interest. If you exceed this limit, the account will be subject to 120 days loss of interest or an equivalent amount on the amount withdrawn/transferred.

It sounds to me like Stamp Duty - go £1 over the limit and you'll be clobbered for duty on the whole sale price.

It would be unlike a bank to interpret it's Ts&Cs in the customer's favour.