Cash ISAs: The Best Currently Available List

eskbanker

Kondongo said:

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?

Yes, Nationwide are no different from numerous other providers who open new issues of accounts and require you to transfer, rather than simply adjusting the rate of each one as they go, which would undoubtedly be more convenient for the saver when rates are increasing (but conversely is advantageous when rates are dropping).

So, I agree that it's stretching a point to describe the interest rate as variable when in practical terms it's likely to stay the same, but my point was that this behaviour isn't what's meant by the reference to 'up to' in the way you appeared to interpret it.

zxspeccy

Email from Ford Money to advise they have increased their Flexible Cash ISA from 1.20% to 1.25%, only a small increase (however they did increase from 1.00% to 1.20% earlier in the month). No need to reapply as this new rate is applied to existing account holders.

refluxer

Virgin have increased their 1 Year Fixed Rate Cash ISA to 2.17%. This is obviously a calculated move to get them to the top of the table and knock the previous top rate of 2.15% into second place. Hopefully other Cash ISA providers will get a bit braver than that !

zxspeccy

refluxer said:

Virgin have increased their 1 Year Fixed Rate Cash ISA to 2.17%. This is obviously a calculated move to get them to the top of the table and knock the previous top rate of 2.15% into second place. Hopefully other Cash ISA providers will get a bit braver than that !

They have also increased their 2 Year Fixed Rate Cash ISA from 2.56% to 2.62%.

xxxxxxxx

Is there any point in having a cash ISA  if your interest is not going to be more than £1000 a year?    Other than treating as any other savings account and choosing the one with the best interest rate

gelato_cat

xxxxxxxx said:

Is there any point in having a cash ISA  if your interest is not going to be more than £1000 a year?    Other than treating as any other savings account and choosing the one with the best interest rate

Only if you are going to be saving it for a very long time and want to preserve the tax benefits years into the future.

eskbanker

xxxxxxxx said:

Is there any point in having a cash ISA  if your interest is not going to be more than £1000 a year?    Other than treating as any other savings account and choosing the one with the best interest rate

The number of scenarios suiting cash ISAs is fewer than it used to be but they're not a complete waste of time for some, as discussed on this recent thread:

https://forums.moneysavingexpert.com/discussion/6372217/who-are-cash-isas-useful-for/p1

zxspeccy

Email from Ford Money to advise they have increased their Flexible Cash ISA from 1.25% to 1.35%, so only a small increase (however they did increase from 1.00% to 1.20% on 13th July and to 1.25% on 26th July). This would be their third increase since 13/07 and just before today' base rate announcement.

Oasis1

zxspeccy said:

Email from Ford Money to advise they have increased their Flexible Cash ISA from 1.25% to 1.35%, so only a small increase (however they did increase from 1.00% to 1.20% on 13th July and to 1.25% on 26th July). This would be their third increase since 13/07 and just before today' base rate announcement.

Still doesn't beat any of MSE's Top Picks: https://www.moneysavingexpert.com/savings/best-cash-isa/#topeasy. Is there a reason you're sticking with Ford?

zxspeccy

Oasis1 said:

zxspeccy said:

Email from Ford Money to advise they have increased their Flexible Cash ISA from 1.25% to 1.35%, so only a small increase (however they did increase from 1.00% to 1.20% on 13th July and to 1.25% on 26th July). This would be their third increase since 13/07 and just before today' base rate announcement.

Still doesn't beat any of MSE's Top Picks: https://www.moneysavingexpert.com/savings/best-cash-isa/#topeasy. Is there a reason you're sticking with Ford?

The first two on that list (1.50%) do not allow transfers in, whilst the second two (1.40% and 1.36%) do not offer monthly interest (which is my preference). The nearest like for like ISA for me is Shawbrook Easy Access Cash ISA at 1.40%.

I will exceed my PSA this year so Cash ISAs still serve a purpose to me, however there is always a tipping point. When rates on other savings products pay over 20% more than I can get from an ISA, then it maybe worth ditching and switching and take the hit on the tax. That said I don’t really need any access to my ISA money so can also consider a Fixed Rate ISA. I will hold fire at the moment to see what reaction the banks have to the Base Rate change from yesterday, however I feel it may soon be time to consider 1-year fixed rates for some of my money.