Cash ISAs: The Best Currently Available List

colsten

Kazza242 wrote: »

I still think it is a good idea for savers to use their ISA allowances.

You are right, for some people it is. For most people it is not though, ever since the allowance has been raised to £15K.

A cash ISA is presently unlikely to be to best choice for more than just a very few of those who should make use of their annual allowance this year. They should be thinking of doing an S&S ISA, or may be put more into their pension. For literally everybody else, saving in interest-paying current accounts is way more sensible than a cash ISA.

None of what I said is a criticism of your stirling work maintaining this thread over the years. Quite the contrary, I think it is fabulous, and it could become oven more fabulous if the thread directed people away from the monotonous 'gotta have a cash ISA and you have arrived' - type reporting about cash ISAs.

Kazza242

Kazza242 wrote: »

I still think it is a good idea for savers to use their ISA allowances. A lot of people with cash savings will spread the money between various 3%-5% interest paying current accounts (and regular saving accounts) and then deposit money into an ISA by 5 April 2015 so as not to lose their allowance.

colsten wrote: »

You are right, for some people it is. For most people it is not though, ever since the allowance has been raised to £15K.

A cash ISA is presently unlikely to be to best choice for more than just a very few of those who should make use of their annual allowance this year. They should be thinking of doing an S&S ISA, or may be put more into their pension. For literally everybody else, saving in interest-paying current accounts is way more sensible than a cash ISA.

None of what I said is a criticism of your stirling work maintaining this thread over the years. Quite the contrary, I think it is fabulous, and it could become oven more fabulous if the thread directed people away from the monotonous 'gotta have a cash ISA and you have arrived' - type reporting about cash ISAs.

Hi. You've quoted only the first line of my third paragraph when the whole paragraph (which I have quoted in this post above) was needed to see the context of what I was writing. Having only the first line makes it look as though I was making a different point.

I agree that for some people putting funds into an S&S ISA or a pension may well be a good idea. However, I think that people have different circumstances and goals so what might be right for one person may not be right for another. People should look at their individual circumstances (and goals) and make decisions based on that.

le_loup

Just as some people are obsessive about Cash ISAs, many seem to becoming obsessive about Current Accounts or S&S ISAs.
Lots of people, who don't want hassle or who may be older, or don't have a risk profile of a young professional, will welcome kazza's dedication to their requirements.
I, for one, use all three but my 96 YO MIL may have different ideas.

Kazza242

le_loup wrote: »

Just as some people are obsessive about Cash ISAs, many seem to becoming obsessive about Current Accounts or S&S ISAs.
Lots of people, who don't want hassle or who may be older, or don't have a risk profile of a young professional, will welcome kazza's dedication to their requirements.
I, for one, use all three but my 96 YO MIL may have different ideas.

I use all three as well (3-5% interest paying current accounts, S&S ISAs and Cash ISAs) and paid extra funds into my pension near the end of last tax year. I agree with your point re: your MIL. Though, the four items I use above are the best options for me, not all of them would suit some of my family members.

colsten

Kazza242 wrote: »

Hi. You've quoted only the first line of my third paragraph when the whole paragraph

Just like many (most?) people who read posts just read the first few words and ignore the context?

There are tons of examples on this forum of people who have just a few thousand pound lingering in cash ISAs, at sub-inflation rates. They are probably following the advice of "Open a NISA before a savings account and save tax free" from the main MSE site without thinking twice, because MSE is on your side, isn't it? Then they find the Kazza cash ISA thread on the forum, and still nobody tells them that they might actually be losing out big time by just sticking their cash into a cash ISA.

There has been a sea change to cash ISAs this year, and the sea change isn't tacking an N in front of ISA. The sea change is that with an annual allowance of £15K, the average saver will take 3 or more years to scrape together enough to use up the allowance. At present interest rates, they gain absolutely nothing from putting their money into a cash ISA until they get anywhere near the allowance limit. And if interest rates change quickly, as you said they might (I am not so sure on that one), having your money in an instant access current account is a great place for having it in.

People who can easily save £15K year on year would more likely be better off with S&S ISAs rather than cash ISAs.

People who have £15K but want to spend their money within the next 3-5 years are definitely not better off in cash ISAs.

If you read my posts carefully, you will notice that I never said that cash ISAs are to be avoided full stop. I have some myself. Your thread is, as I said earlier, a stirling effort to keep a current list of the best cash ISAs. There isn't one better on the internet, and I hope you will continue to maintain this thread for a long time.

le_loup wrote: »

Just as some people are obsessive about Cash ISAs, many seem to becoming obsessive about Current Accounts or S&S ISAs.
Lots of people, who don't want hassle or who may be older, or don't have a risk profile of a young professional, will welcome kazza's dedication to their requirements.
I, for one, use all three but my 96 YO MIL may have different ideas.

I take it you mean it is not obsessive to bang on regardless about cash ISAs as the best / most important places to save cash in (see link above)? Whilst saying that cash ISAs might not be your best choice is obsessive? Great logic.

I don't mind if you consider my posts, or those of others who post along the same lines as myself about cash ISAs, obsessive. I know that I, and the other posters questioning the unconditional 'get a cash ISA' advice, am giving people lots better advice on how to make the best of their money.

Kazza242

colsten wrote: »

Just like many (most?) people who read posts just read the first few words and ignore the context?

I read and quoted all of your post, so not sure what you mean by this. The reason I mentioned 'context' was because I just felt that by specifically quoting that one line of my post it made it look like I was making a different point to the one I was actually making.

colsten wrote: »

There are tons of examples on this forum of people who have just a few thousand pound lingering in cash ISAs, at sub-inflation rates. They are probably following the advice of "Open a NISA before a savings account and save tax free" from the main MSE site without thinking twice, because MSE is on your side, isn't it? Then they find the Kazza cash ISA thread on the forum, and still nobody tells them that they might actually be losing out big time by just sticking their cash into a cash ISA.

Help is at hand if people need it. I've seen a number of posts on the MSE forum from people with savings asking for advice on what to do with it. After obtaining additional information on the person's circumstances, goals and attitude to risk (if it wasn't provided in the initial post), MSE members have suggested options to explore. If people are not sure they can always ask on the forum and many people already do.

colsten wrote: »

There has been a sea change to cash ISAs this year, and the sea change isn't tacking an N in front of ISA. The sea change is that with an annual allowance of £15K, the average saver will take 3 or more years to scrape together enough to use up the allowance. At present interest rates, they gain absolutely nothing from putting their money into a cash ISA until they get anywhere near the allowance limit. And if interest rates change quickly, as you said they might (I am not so sure on that one), having your money in an instant access current account is a great place for having it in.

I don't think anyone is disagreeing with having money in instant access (interest paying) current accounts. I mentioned that that was what a lot of people were doing in my #3793 post above. At the moment, yes, savings rates are not great and as I posted earlier a lot of people (myself included) are taking advantage of the fierce competition amongst current account providers offering up to 3%-5% and many intend to deposit money into an ISA near the end of the tax year.

Re: your point about gaining nothing by putting money into a cash ISA. Again, it depends on the person's circumstances. For example, one of my friends that I mentioned in my earlier post (who is near the higher rate tax threshold and is saving for a deposit for a flat) has an interest paying current account maxed out (and existing Cash ISAs from previous tax years). He would benefit by putting money into a Cash ISA at the end of the tax year to shield his interest (in future years) from tax (and it will help him to remain a basic rate tax payer). He, understandably, doesn't want to pay extra into his pension (like our other friend did) as he wants the money available for when he buys his flat. He is understandably looking at low risk options.

colsten wrote: »

People who can easily save £15K year on year would more likely be better off with S&S ISAs rather than cash ISAs.

People who have £15K but want to spend their money within the next 3-5 years are definitely not better off in cash ISAs.

Again, depends on the person's circumstances, goals and attitude to risk. I am not saying that I agree or disagree - all I am saying is that people should do what's right for them.

colsten wrote: »

If you read my posts carefully, you will notice that I never said that cash ISAs are to be avoided full stop. I have some myself.

I don't think we are disagreeing with each other here. Both of our posts mention using interest paying current accounts, S&S ISAs, and Cash ISAs etc. In one of my posts I mentioned using interest paying current accounts and then putting money into an ISA before the end of the tax year to avoid losing the allowance.

Some people will still have cash ISAs from previous tax years earning decent fixed rates compared with the rates on offer today.

colsten wrote: »

Your thread is, as I said earlier, a stirling effort to keep a current list of the best cash ISAs. There isn't one better on the internet, and I hope you will continue to maintain this thread for a long time.

Many thanks. I am pleased it has been helpful to people.

jimjames

le_loup wrote: »

Just as some people are obsessive about Cash ISAs, many seem to becoming obsessive about Current Accounts or S&S ISAs.
Lots of people, who don't want hassle or who may be older, or don't have a risk profile of a young professional, will welcome kazza's dedication to their requirements.
I, for one, use all three but my 96 YO MIL may have different ideas.

I might be one you're referring to but I'd not mentioned current accounts here at all. Surely on a site to help people get the most out of their money it should be the aim to help them do that.

jimjames

le_loup wrote: »

Just as some people are obsessive about Cash ISAs, many seem to becoming obsessive about Current Accounts or S&S ISAs.
Lots of people, who don't want hassle or who may be older, or don't have a risk profile of a young professional, will welcome kazza's dedication to their requirements.
I, for one, use all three but my 96 YO MIL may have different ideas.

I might be one you're referring to but I'd not mentioned current accounts here at all. Surely on a site to help people get the most out of their money it should be the aim to help them do that.

Some may be better off with regular savings accounts, some non taxpayers with standard savings but the mse advice to get an ISA at all costs is just plain wrong.

This thread is great way for those who do have ISAs to find the best deals but I do believe it worth people checking an ISA is the most appropriate option for their circumstances when average savings are so much lower than most mentioned on here.

curlygirl1971

Many thanks Kazza, for your continued efforts in providing an up-to-date ISA list

le_loup

I was not specifically referring to anyone and certainly not criticising.
All I was trying to say is that, just as Cash ISAs should not always be the first choice, they are perfect for many people and have recently become better.