Cash ISAs: The Best Currently Available List

masonic

freeguy1984uk said:

Hello, I've been keenly viewing this thread for the past couple of months and have finally signed up to the forum.

I have a question please: Is it normal that variable ISA's don't automatically increase rates for existing accounts?

They were happy to reduce rates automatically, but recently I have to keep asking them to give me their new increased rate.

This is for Sainsbury's ISA by the way, I have emailed a few other providers with mind of switching to them, but they say the same thing, no automatic rate increase, I have to manually keep an eye on it and addres it myelf.

Yes, it is normal for banks to offer a new edition of a savings account rather than raise rates for everyone. Some do raise rates on existing accounts, some don't. It is down to you to keep an eye on the best accounts, the top account of the future may be offered by a different bank than that of today.

eskbanker

freeguy1984uk said:

I have a question please: Is it normal that variable ISA's don't automatically increase rates for existing accounts?

Many, but not all, savings providers (taxable or ISA) introduce new issues of their variable rate products rather than adjusting the rate on existing ones, not a popular model with savers, especially when rates are generally on the rise relatively frequently, so you're doing the right thing by researching this with the providers you're interested in.  Of course, most don't have any linkage with the BoE base rate, so rises aren't automatic as such anyway....

AndyTh_2

does anyone know why https://www.moneysavingexpert.com/savings/best-cash-isa/ stopped showing Newcastle's triple access ISA? It was joint top rate, was the only of the top ones supporting flexible ISA withdraws (regardless of being triple access, that is still useful), and allowed ISA transfers in.

Meanwhile Goldman Sachs gets two entries from two of its companies serving the same product, not supporting ISA transfers or flexible ISA

refluxer

Yes, it is odd that the Newcastle ISA isn't featured - it deserves 3rd place for the rate alone, despite the limited access and £1000 minimum balance.

It's always good to check multiple comparison sites when looking for the best rates. The Newcastle ISA gets second place on the Savings Champion site, for example.

refluxer

freeguy1984uk said:

Hello, I've been keenly viewing this thread for the past couple of months and have finally signed up to the forum.

I have a question please: Is it normal that variable ISA's don't automatically increase rates for existing accounts?

They were happy to reduce rates automatically, but recently I have to keep asking them to give me their new increased rate.

This is for Sainsbury's ISA by the way, I have emailed a few other providers with mind of switching to them, but they say the same thing, no automatic rate increase, I have to manually keep an eye on it and addres it myelf.

As I mentioned above, Paragon appear to be good at increasing rates on their existing variable ISA products. Shawbrook do too, at least in my (recent) experience.

I have variable rate ISAs with both of those banks which are paying substantially more than when I took them out.

Expotter

Paragon have now increased the rate for their currently available Triple Access cash ISA , Issue 9 to 1.55%. Flexible and it allows transfers. Min £1, interest paid monthly or annually.

Expotter

Coventry Building Society Online Easy Access ISA (5) will also pay 1.55%, but from September 1st. Currently 1.25%. Flexible, £1min, accepts transfers and interest is also paid monthly or annually.

refluxer

There's been a small bump for Shawbrook's Easy Access ISA (Issue 20) to 1.5% today, so not too far from the best Easy Access rate.

2010

Undecided, wary about fixing anything at the moment
Marcus easy access ISA 1.5%
Virgin one year fix ISA 2.4%

Any opinions appreciated.

refluxer

2010 said:

Undecided, wary about fixing anything at the moment
Marcus easy access ISA 1.5%
Virgin one year fix ISA 2.4%

Any opinions appreciated.

It's a hard question to answer, however I'm trying to get my head round it by imagining scenarios like this...

Here are the two options...
£20k easy access @ 1.5% for 12m = £20,300 (although this is likely to rise)
£20k fixed @ 2.4% for 12m = £20,480

Let's say you put your money in easy access today but thought you might fix in 4 months time (Dec)...
£20k easy access @ 1.5% for 4m = £20.1k, then
£20.1k fixed @ 2.84% for 12m = £20,480 on 13th Aug 2023 (for comparison purposes)

So... a one-year fixed rate rate in mid December this year would need to be at least 2.84% in order for you to break even (compared with fixing today @ 2.4%) on 13th Aug 2023. If rates in December are higher than that, then you will have lost out by fixing @ 2.4% today.

The problem with simple scenarios like this though is that there are unknowns which are impossible to factor in.... the first is that if rates continue to climb, then Easy Access rates will too, in which case the calculations that involve that aspect (eg. the £20.1k figure in December) will be higher and therefore the rate a fix in December will need to be to break even this time next year will be lower, thus making fixing now look even less attractive. The second is that rates (at some point) may start to fall, in which case obviously fixing at that point would be the way to go.

I'm currently holding in some easy access accounts and facing similar decisions. I've already been burnt by fixing for a year back in February in a (non-ISA) fixed rate account and rates have doubled since then so I'm certainly being a bit more cautious at the moment, but at least with an ISA you have the option to transfer out within a fixed rate period (if you're willing to take the penalty) so you can potentially do something about it in the future if fixing today ends up being a bad move.

If you want to have a play with your own figures and scenarios, then this is the interest rate calculator I use.