Cash ISAs: The Best Currently Available List

colsten

masonic wrote: »

I don't consider 4% to be a very good rate for a regular saver account.

Agree, as you can make more money even by simply putting your money into taxable regular savings accounts. At least you can as a basic rate tax payer, which the vast majority of UK tax payers are. You can also boost your returns outside cash ISAs by putting some of your money into some other money boosting 'ventures' such as Halifax Reward, account switching and/or the recent HSBC offer for Advance customers). But leaving all boosters, and any drip-feeding considerations, aside, here are some numbers:

deposit £1,250 a month into an ISA regular saver

TOTAL INTEREST £323.05

deposit £1,250 a month (max allowed in ISA regular savers) into regular savers. Note that no ISA regular saver at 4% is presently available, whilst all non-ISA RSs are presently available.

• £800 into HSBC, FD, M&S 6% RS: £247.81 after BR tax
• £450 into a 4% ISA Reg saver: £116.30

TOTAL INTEREST £364.11

So you can get at least 10% more outside a cash ISA. Granted, you need a few more accounts to do so but most astute moneysavers either already have at least some of the additional accounts, or won't mind opening and operating them. Especially as the non-ISA accounts can all be opened and operated online, and - crucially - are available to everybody in the UK, not just regional pockets or customers who have held accounts for x years.

Considering that most savers will actually not have anything like £1,250 a month / £15,000 a year to squirrel away each year, the "tax-free" factor of cash ISAs stays basically irrelevant for cash savers. Great-looking AER %ages for regular savings ISAs make no difference to this trend - fact is that presently cash ISAs don't return as much as taxable accounts for the majority of people.

Those arguing that you shouldn't lose your annual cash ISA allowance would be right if the money can be invested for at least 5 - 10 years in an S&S ISA. But don't waste your cash on a cash ISA, not until cash ISA rates are clearly outperforming non-ISA interest rates.

veryintrigued

masonic wrote: »

I don't consider 4% to be a very good rate for a regular saver account.

I do.

Especially when its £1250 a month which can be saved tax free - and one less thing to tell the tax man about.

And especially considering I've filled a whole host of other 5,4,3% C/A accounts and am filling other (non ISA) RS accounts (some shock, horror as low as 3.35% gross!!) as much as I can. Some of which Colsten states and others such as the now closed Penrith and Chorley.

Hey ho - each to their own. I'll step away from this thread now and await any of these rubbish R.S ISAs being released in a few weeks - fingers crossed.

KTF

A different approach here if you are willing to tie up £300 for 12 months or deposit £25 a month x 12: https://forums.moneysavingexpert.com/discussion/5177976

masonic

KTF wrote: »

A different approach here if you are willing to tie up £300 for 12 months or deposit £25 a month x 12: https://forums.moneysavingexpert.com/discussion/5177976

Thanks, I missed that. Looks good for running alongside a S&S ISA as mentioned in the thread.

colsten

veryintrigued wrote: »

And especially considering I've filled a whole host of other 5,4,3% C/A accounts and am filling other (non ISA) RS accounts (some shock, horror as low as 3.35% gross!!) as much as I can.

Are you saying now that as there is a "whole host of other 5,4,3% C/A accounts and am filling other (non ISA) RS accounts" and that you would prefer many other accounts to cash ISAs? In which case, we are in violent agreement . So why would you defend / promote cash ISAs?

masonic

colsten wrote: »

Are you saying now that as there is a "whole host of other 5,4,3% C/A accounts and am filling other (non ISA) RS accounts" and that you would prefer many other accounts to cash ISAs? In which case, we are in violent agreement . So why would you defend / promote cash ISAs?

If veryintrigued has already filled the available 5,4,3% current accounts and is already utilising the 6% regular savers, that would equate to £30k or more in cash savings, and IIRC (s)he also has some index linked saving certs, so perhaps another £15k, making £45k+ held in cash. Seems like a lot in cash already. How much more is needed?

veryintrigued

colsten wrote: »

So why would you defend / promote cash ISAs?

Suprised at you Colsten.

I've filled most other high interest cash options (and yes I need cash options) and am hoping that some great R.S ISA options appear on the horizon.

If that constitutes defending/promoting the full swathe of cash ISAs by you then so beit.

As Ive said before there was rabid criticism (and rightly so) that this very site was constantly promoting most cash ISAs when there were better options.

It now seems to be in vogue to criticise ALL cash ISAs in ALL circumstances.

Over and out

butterflymum

colsten wrote: »

Especially as the non-ISA accounts can all be opened and operated online, and - crucially - are available to everybody in the UK, not just regional pockets or customers who have held accounts for x years.

Tesco Bank still do not allow Northern Ireland residents to open their interest paying current account.

jimjames

veryintrigued wrote: »

It now seems to be in vogue to criticise ALL cash ISAs in ALL circumstances.

Over and out

I wouldn't say ALL circumstances but when the average balance in a cash ISA is £7k and 60% of people in UK have less than £2000 in savings the numbers who need more than the £50k as cash that can be put into current accounts is very small.

In fact that 60% of people could manage with just the TSB account paying 5%.

Far more people would benefit from investing in S&S ISAs but unfortunately the media headlines sensationally focus on the FTSE rising and falling rather that highlighting the long term benefits of investments - hardly surprising when it's not really a very exciting story to wait 20+ years for compounding to work its magic.

veryintrigued

jimjames wrote: »

I wouldn't say ALL circumstances but when the average balance in a cash ISA is £7k and 60% of people in UK have less than £2000 in savings the numbers who need more than the £50k as cash that can be put into current accounts is very small.

In fact that 60% of people could manage with just the TSB account paying 5%.

Far more people would benefit from investing in S&S ISAs but unfortunately the media headlines sensationally focus on the FTSE rising and falling rather that highlighting the long term benefits of investments - hardly surprising when it's not really a very exciting story to wait 20+ years for compounding to work its magic.

I dont argue with any of this (and never have).

The simple fact of the matter is that (some) cash ISAs may indeed be the right choice for a (relatively) small amount of people.

This small amount of people may like to read this thread and be armed with the best options available without some very established and knowledgable forumites giving the generalised 'all cash ISAs are rubbish/what have you been eating' type of retort. These being the same forumites who helpfully ask forum members (on other threads) for specifics on their questions such that they are able to assist them.

Anyway lets move on eh before I get accused of promoting them again!