Cash ISAs: The Best Currently Available List

steveksullivan

..... and see my seperate thread re: Virgin money rate increases.

Have any other one year fixes followed suit yet? Need to move another matured ISA .....

2010

Can`t see the point of any fixed rate until we see how far the BoE is likely to go and how aggressively.

steveksullivan

2010 said:

Can`t see the point of any fixed rate until we see how far the BoE is likely to go and how aggressively.

I know .... it's a balancing act. Obviously the banks have known for a while that rates are going up, so how much of any future increase is already 'priced in' to rates available now ..... and are Virgin moving early for the next rate increase, or late for the last one ....?!?!?!?

Kazza242

The first post has been updated to include the new variable and fixed rate ISAs.  

Rates continue to go up.  

2010

I'm waiting until after the next BoE meeting but will still probably open a variable ISA, ready to move later if needed.

Expotter

FYI: Newcastle Building Society Triple Access Cash ISA 1.5% variable, open with £1 up to £250k, accepts transfers, interest paid annually and can be opened online or in branch.

Kondongo

Expotter said:

FYI: Newcastle Building Society Triple Access Cash ISA 1.5% variable, open with £1 up to £250k, accepts transfers, interest paid annually and can be opened online or in branch.

Yes, I've just noticed this too, and then went and checked on my (I thought!) similar Nationwide Triple Access ISA I opened in June.  That was still only offering 1% interest, although NW's website had the rate at 1.35%.  I queried this with NW who said I could transfer in from the June ISA to the new one.  Only problem is that this means a new 'anniversary date' at which the interest is paid, meaning I've wasted a month.  Presumably, if they keep offering new issue X3 access ISAs and if rates continue to increase and if I continued the policy of changing to the next issue (I won't be!) I could lose months of interest.

Reading the Nationwide's X3 access summary I see they very sneakily write....

"Interest rate

Up to 1.35% AER/tax-free (variable) for 12 months" 

It's the phrase "UP to" that's important here.  So yes, it is variable but only downwards, in their favour, and never above the rate at the time of issue which is effectively fixed.

I've also read the Newcastle X3 ISA summary and the words 'up too" aren't there so presumably this could increase above the current 1/5%.

Is my reading correct regarding the two societies and their products?

eskbanker

Kondongo said:
checked on my (I thought!) similar Nationwide Triple Access ISA I opened in June.  That was still only offering 1% interest, although NW's website had the rate at 1.35%.  I queried this with NW who said I could transfer in from the June ISA to the new one.  Only problem is that this means a new 'anniversary date' at which the interest is paid, meaning I've wasted a month.  Presumably, if they keep offering new issue X3 access ISAs and if rates continue to increase and if I continued the policy of changing to the next issue (I won't be!) I could lose months of interest.

You wouldn't waste a month or lose months of interest, if you transferred money to another account, the interest for the month the money has already been in the old one would still be paid on maturity.

Kondongo said:

Reading the Nationwide's X3 access summary I see they very sneakily write....

"Interest rate

Up to 1.35% AER/tax-free (variable) for 12 months" 

It's the phrase "UP to" that's important here.  So yes, it is variable but only downwards, in their favour, and never above the rate at the time of issue which is effectively fixed.

I've also read the Newcastle X3 ISA summary and the words 'up too" aren't there so presumably this could increase above the current 1/5%.

Is my reading correct regarding the two societies and their products?

No - the significance of 'up to' is simply that they'll pay a lower rate of 0.15% if you make too many withdrawals.  As it's a variable rate, it could go up or down, but that's a different matter from the 'up to' wording, which doesn't imply that it can only go down.

Kondongo

eskbanker said:

Kondongo said:

Reading the Nationwide's X3 access summary I see they very sneakily write....

"Interest rate

Up to 1.35% AER/tax-free (variable) for 12 months" 

It's the phrase "UP to" that's important here.  So yes, it is variable but only downwards, in their favour, and never above the rate at the time of issue which is effectively fixed.

I've also read the Newcastle X3 ISA summary and the words 'up too" aren't there so presumably this could increase above the current 1/5%.

Is my reading correct regarding the two societies and their products?

No - the significance of 'up to' is simply that they'll pay a lower rate of 0.15% if you make too many withdrawals.  As it's a variable rate, it could go up or down, but that's a different matter from the 'up to' wording, which doesn't imply that it can only go down.

 Yes, that would be the logical and reasonable understanding.

However, when I queried about why my account did not reflect an increase in the interest rate (it had stayed  at 1%) compared to the later issue of the Triple Access ISA, (1.3%)  just a month later, I was clearly advised that if I wanted to benefit from further increased interest rates I would need to close my old account and open a new Triple Access Isa account.  So no 'up' variability.

Furthermore, I was also informed that I might need to complete this close/open account process potentially on multiple, say monthly, occasions to benefit from any future increased rates.  My point is, if the interest rate on these accounts was really variable, upwards at least, then why would I need to close the account and open a new one each time to benefit?

Also noteworthy, is that if 4 or more withdrawals are made from the Nationwide accounts the interest rate drops to a paltry 0.15 %, while in the Newcastle Triple Access ISA it only falls to 0,75%.  A significant difference.  

gwapenut

Nationwide routinely play the games they used to accuse banks of playing.

I'm going to hold on for the next rate meeting but am likely to pull all my money out and into the Yorkshire, who tend to track rates on existing accounts better than nationwide. Just waiting to make sure this is the case before jumping.

I don't even feel it's worth swapping to the higher nationwide rate in the meantime because they'll probably make a pigs ear of the internal transfer and make my money disappear for a couple of months.