Cash ISAs: The Best Currently Available List

gwapenut

rallycurve said:

gwapenut said:

intalex said:

Just noticed a 3-year fixed rate ISA at Skipton at 4.20% AER with a deposit/transfer window until 22/03/2023... worth opening empty as and holding as an option for now if a 3-year fix is of interest...

Given the time period, and having almost jumped too soon on a number of good-then-bad-now fixes this year, I've decided I prefer the 3 year M&S ISA at 4%. It's just slightly less, but the penalty is a flat £100 which, on a large balance, I can easily write-off if rates rise above this level at any time over the next 3 years.

I agree. The £100 penalty is equivalent to 90 days on a £10k balance but 45 days on £20k, 30 days on £30k and so on. The best in the market I would say. 
Does anybody have any experience with them and can comment on their customer service and timeframes? I applied online on Monday and haven't heard anything yet. They did say they'd action it withing 5 working days but just wondering

I also applied on Monday. I did phone them up, fearing the worst of customer service, but actually found them very helpful and knowledgeable.

I had a similar ISA with them many years ago, locking in at 3% for 3 years and £100 penalty just before QE made all the rates plummet, despite static interest rates. I chose them for similar reasons - interest rates were already rock-bottom, meaning a fix seemed stupid, but with QE coming I wanted an each-way bet. The bet paid off handsomely. When it matured I had to shift to 1.7%.

I can't comment on switching efficiency, but don't recall the usual clown-show I have suffered in the last 3 years with Barclays, Nationwide, Yorkshire and, worst of them all, Virgin. For some reason, switches go wrong for me more often than not, but on the upside I've made £100s of extra profit in compensation.

intalex

gwapenut said:

intalex said:

Just noticed a 3-year fixed rate ISA at Skipton at 4.20% AER with a deposit/transfer window until 22/03/2023... worth opening empty as and holding as an option for now if a 3-year fix is of interest...

Given the time period, and having almost jumped too soon on a number of good-then-bad-now fixes this year, I've decided I prefer the 3 year M&S ISA at 4%. It's just slightly less, but the penalty is a flat £100 which, on a large balance, I can easily write-off if rates rise above this level at any time over the next 3 years.

This is good intel - worth its own thread!

gwapenut

Just to point out a couple of things with M&S that I spotted in the T&Cs:
1. It seems that each incoming transfer has its own 3-year period. It follows that each would have its own £100 penalty. So if assembling an ISA from several others, collate them externally in a donor account unless you may are likely to want to partially withdraw, in which case this may workm in your favour (see 2 below)
2. Partial withdrawals aren't possible. So if you need some of the money, you'd need to transfer out with £100 penalty, then partially withdraw. Of course, if you're just hedging against this becoming an uncompetitive account in the future, you'd probably want to fully transfer anyway.

Oasis1

Coventry just e-mailed to say their Limited Access ISA (Online) (3) is going up from 2.95% to 3.1% on 1 March.

Details here of all interest rises here: https://www.coventrybuildingsociety.co.uk/member/help/member-support/bank-of-england-base-rate.html?utm_source=RTC205&utm_medium=Email&utm_campaign=questions

hamski

I’m also thinking of doing a transfer from West Brom to m&s isa, after talking to them on phone I was sent forms to initiate a transfer but there listed as being part of the electronic transfer scheme .Anyone know how the transfer would go through paper or electronic as there’s just a 5 day window with the West Brom from the start of the notice.Wouldn’t want it to go wrong after waiting 6 months to transfer penalty free.

Consumerist

hamski said:

I’m also thinking of doing a transfer from West Brom to m&s isa, after talking to them on phone I was sent forms to initiate a transfer but there listed as being part of the electronic transfer scheme .Anyone know how the transfer would go through paper or electronic as there’s just a 5 day window with the West Brom from the start of the notice.Wouldn’t want it to go wrong after waiting 6 months to transfer penalty free.

If both ISA managers are signed up to electronic transfers then just open an M&S ISA account; you are usually asked if you want to transfer-in an ISA as part of the application - so have the West Brom account details ready. M&S should notify West Brom of the transfer request on the same or next working day.

RobertKr

In terms of the M&S fixed isa account, how do you move money to the account (not transfer from another isa acc). I recently opened new 2y fixed isa with charter savings bank (i think with 4.05% interst) but i haven't moved money yet (20k) as I wasn't sure about penalty for withdrawal (180 days of interest). I probably need this money at around march/may 2025 (remortgage) but also might need it earlier so penalty was bothering me and the 30 days window to fund in approach. M&S 3 year fixed look much better (only £100 if i withdraw it in 2025 or earlier, and i can keep it for full 3 years) but when i tried to open account i have been asked about debit card details and then it seemed on another page m&s will debit my card for 20k£ (I am not even sure if lloyds will allow it?). I have the money on saving account i could move it to lloyds but i wanted to open account then transfer 20k from lloyds by online bank transfer, can i do it with m&s?

rallycurve

RobertKr said:

In terms of the M&S fixed isa account, how do you move money to the account (not transfer from another isa acc). I recently opened new 2y fixed isa with charter savings bank (i think with 4.05% interst) but i haven't moved money yet (20k) as I wasn't sure about penalty for withdrawal (180 days of interest). I probably need this money at around march/may 2025 (remortgage) but also might need it earlier so penalty was bothering me and the 30 days window to fund in approach. M&S 3 year fixed look much better (only £100 if i withdraw it in 2025 or earlier, and i can keep it for full 3 years) but when i tried to open account i have been asked about debit card details and then it seemed on another page m&s will debit my card for 20k£ (I am not even sure if lloyds will allow it?). I have the money on saving account i could move it to lloyds but i wanted to open account then transfer 20k from lloyds by online bank transfer, can i do it with m&s?

I don't think you can open it without funding it and there does not seem to be an option to receive a bank transfer either.
You are required to enter your card details during the application process. Alternatively I think you can post an application form with a cheque. The third funding option is an ISA transfer (also by post)

I applied last Monday and provided my card details, the amount was debited on Friday when they sent me an email confirming the request was completed and a certificate of deposit is coming my way. I was also worried about the bank declining a large debit card payment but everything seems to have gone though successfully

Catbells

I am in the process of applying for an M&S cash ISA for £5000.  I bought a YBS ISA a few days ago (£10000).  M&S state they won't accept an application if a cash ISA has been bought within the last 12 months.  What I would like to know is why is it not permissible to do this given that I haven't spent the maximum £20,000 this year on ISAs?   (New to buying ISAs).

hamski

Think your only allowed to fund one type of isa per year (one cash and one stocks and share)