Cash ISAs: The Best Currently Available List

purplestar133

hgt wrote: »

Yes PurpleStar - You should be able to depostit funds right up to the 60 days with the Halifax 2-year fix (even for the 2014/15 Tax year)... though remember a transfer in from another provider can take a few weeks, so best not leave it too close to the wire!

Though how about this for another suggestion.... why not use the link in post # 3563 to get the Virgin 5-year fix at 3.00%.......



Bear with me - I know you don't want to lock away for that long... As the Virgin 5-year fix has only a 180 day interest penalty, if you were to close / transfer out after 2 years you would have gotten approx 2.25% over the term - which slightly beats the Halifax deal.

These are just crude calculations, but this is roughly what you'd get (averaged out) if you were to close/transfer the Virgin 5-year fix before the end of the term.....

After 1 year - 1.5%
After 2 years - 2.25%
After 3 years - 2.5%
After 4 years - 2.65%
After 5 years - 3.0%

The above calculations take into account the 180 day interest penalty.
This is a bit similar (though not quite as good) as the Newcastle BS account which was mentioned in the Newsletter this week, but then quickly pulled. But of course Martin can't mention the Virgin deal as an alternative because it doesn't officially exist (you have to use the special link). This account is available until 5th April and remains open for deposits / transfers-in for 30 days after opening.

Thanks ever so much for your thoughts on this hgt. I ended up ringing Halifax this morning (hadn't seen your post yet) and they said yes, you can make additional deposits within the first 60 days. I always prefer to ask for opinions on the MSE forums before ringing companies as we tend to know more than the phone advisors!

The more I think about it the more I realise I can't really lock in for even 2 years, as a lot can happen in 2 years and my plan is to buy a house at some point. Landlord changing rent, unstable job etc might affect when this will happen so can't plan as much as I'd like to.

So I'm looking again at the 1 year Virgin fix. Don't you find it annoying how lots of fixes end in May so you've missed the best rates by the time you can transfer?

Archi_Bald

If you are expecting to spend the money within the next 2-5 years, losing your cash ISA allowance would not really matter and you might as well forget about cash ISAs altogether. Consider putting your money into one or more current accounts since you are likely to get better interest there.

purplestar133

Archi_Bald wrote: »

If you are expecting to spend the money within the next 2-5 years, losing your cash ISA allowance would really matter and you might as well forget about cash ISAs altogether. Consider putting your money into one or more current accounts since you are likely to get better interest there.

Thanks, hadn't considered it that way. I put last tax year's money into a current account and am now going to put it in an ISA for the tax free status before the end of the tax year. Was planning on doing the same with this year's money. Flex Direct allowed £2500 and Yorkshire Bank allow £3000 I think, and I've got more than that. Haven't bothered with Santander 123 as I don't pay enough bills to offset the fee (biggest bills are tied up in rent). I'm vaguely aware of Lloyds Vantage as having a decent rate - does that allow larger balances? I'll look into it (and alternatives).

Archi_Bald

Lloyds, BoS Vantage as well as TSB Enhance all allow 3 accounts @ £5K each, 3% AER. Though these accounts are rumoured to get withdrawn for new applicants anytime soon. TSB have announced a Plus account - max 2 x £2K, 5% AER, and Lloyds will also announce something new soon. Probably BoS as well.

Apologies, I made a boo-boo in my earlier post: I was meant to say losing your cash ISA allowance would not really matter

purplestar133

Archi_Bald wrote: »

Lloyds, BoS Vantage as well as TSB Enhance all allow 3 accounts @ £5K each, 3% AER. Though these accounts are rumoured to get withdrawn for new applicants anytime soon. TSB have announced a Plus account - max 2 x £2K, 5% AER, and Lloyds will also announce something new soon. Probably BoS as well.

Thanks, I'll look into them. It's a bit unnerving thinking of losing that 'tax free wrapper' though, after quite a few years of building it up!

Archi_Bald wrote: »

Apologies, I made a boo-boo in my earlier post: I was meant to say losing your cash ISA allowance would not really matter

I thought that!

Archi_Bald

purplestar133 wrote: »

Thanks, I'll look into them. It's a bit unnerving thinking of losing that 'tax free wrapper' though, after quite a few years of building it up!

If you feel uneasy about it, don't do it. The interest rates on those current accounts are variable, so there is a risk some or all might reduce their rates. I personally am happy taking that risk because I don't think it's a big risk but you need to be comfortable with what you are doing.

hgt

purplestar133 wrote: »

So I'm looking again at the 1 year Virgin fix. Don't you find it annoying how lots of fixes end in May so you've missed the best rates by the time you can transfer?

To be honest I think the Virgin 1-year fix is one of the best ISA products this year, so in your situation I'd probably go for that. Though it is true you could probably earn more in a current account.

It's probably also worth checking out the Ts&Cs on that existing tracker account of yours.... maybe the rate might not drop that much when your period is up, sometimes the old accounts are the best!

purplestar133

hgt wrote: »

To be honest I think the Virgin 1-year fix is one of the best ISA products this year, so in your situation I'd probably go for that. Though it is true you could probably earn more in a current account.

It's probably also worth checking out the Ts&Cs on that existing tracker account of yours.... maybe the rate might not drop that much when your period is up, sometimes the old accounts are the best!

Oh it will - it will drop to 0.5%!

I've opened the Virgin 1 year fix. It's only the fact that it's for existing customers that put me off for a bit. I rang them and played innocent to get them to confirm it was ok for me to pay into it despite not being an existing customer. I know someone else has done that and reported back on here, but I wanted to be able to say 'I spoke to such and such on this day and they said it was ok' in case there was any problem. The guy I spoke to wasn't that sure tbh, but he checked with a colleague and eventually said they would honour it. Though I don't have complete confidence in him!

Might open the Halifax 2 year to drop my Santander Major ISA into, maturing in May. I decided I could live with having the smaller amount in Santander tied up for 2 years, so long as the bulk of my savings are only tied up for a year.

Thanks for all your help everyone.

purplestar133

Archi_Bald wrote: »

If you feel uneasy about it, don't do it. The interest rates on those current accounts are variable, so there is a risk some or all might reduce their rates. I personally am happy taking that risk because I don't think it's a big risk but you need to be comfortable with what you are doing.

Yes, thanks. It also crossed my mind that there might be funding requirements on those accounts. Though that's not too much trouble in the big scheme of things, I already cycle money around to satisfy the funding requirements for 2 current accounts I'm saving in, separate to my main current account and it might get a bit fiddly having to do it for many more. I have to split it into a few transactions as I don't have enough spare cash to transfer, say, £1000 at a time, so it makes it a longer process.

kalsha

purplestar133 wrote: »

Oh it will - it will drop to 0.5%!

I've opened the Virgin 1 year fix. It's only the fact that it's for existing customers that put me off for a bit. I rang them and played innocent to get them to confirm it was ok for me to pay into it despite not being an existing customer. I know someone else has done that and reported back on here, but I wanted to be able to say 'I spoke to such and such on this day and they said it was ok' in case there was any problem. The guy I spoke to wasn't that sure tbh, but he checked with a colleague and eventually said they would honour it. Though I don't have complete confidence in him!.

So you have opened the virgin one when you are not a existing customer? Did you open it online? I am thinking of doing it tomorrow. I have been thinking about it for over a week but was waiting for someone to say they were successful. I will have a go tomorrow.