Cash ISAs: The Best Currently Available List

Curveygirl

Kazza242 wrote: »

I'm assuming that you had opened the Barclays Tax Beater ISA(?), which was paying 6.50% when it initially launched. If so, then the current rate it is paying (from 02/01/2008) is 6.56% gross which works out as 6.76% AER.

This is what it says on the Barclays website, here (which also shows the current interest rate):



Between the 01/08/2007 - 01/01/2008 the rate paid was 6.81% gross (7.03% AER). As you've received your statement, you could confirm you were receiving this rate - by calculating the interest you should have been paid for e.g. November 2007 and checking it against how much was paid.

0.0681 x The sum in your account on Nov 1st
divide by 365
x 30 (the number of days in Nov)

e.g. 0.0681 x £3150 = (£214.51)
divide by 365 (=0.587)
x 30 = £17.63 interest (approx)

Well thanks for that Kazza
Yes, its a Barclays Tax Beater ISA. And I have finally sat down and worked out what interest rate I'm actually getting (no mean feat as the balance has never stayed the same) -it is the amount it says on the statement (5.81% +1%), so I'm happy that they put it up from the original rate without informing me (no complaints there!)
Although I haven't got much in the ISA, I am paying particular attention to the rate as I was one of the lucky people with last years Barclays Regular Savers account, where they cocked up every single customers interest rate but then compensated the maximum I could have earned if I had saved the maximum allowed for that account (which I hadn't). I don't remember the exact figures, but I think I got about £5 interest when it should have been £12.50, but the compensation was £125. Let me type that again, just incase anybody missed it the first time:

I watch interest rates because last time Barclays cocked up they gave me £125 to make up for the £7 they had shortchanged me !!!!!!!!!!!!

Kazza242

The first post has been updated to include the new Scarborough BS 30 day notice ISA, paying 6.30% on balances of £1,000 and above.

The Chorley BS Red Rose mini cash ISA, paying 6.10% on balances of £18,000 and above has also been added to the first post.

Special_Saver2

I will need to transfer an ISA soon and was interested in the Scarborough BS account pointed out above, paying 6.30%.

Reading through the terms and conditions, I see that all transfers or closures for this account automatically incur a 30 day loss of interest (it is not possible to give 30 days' notice). I would be able to do the transfer in time for March and would definitely want to transfer out after 1 year to avoid the substantial drop in interest rate on 31/03/09, which means that with the loss of 1 month's interest, the average interest would be 5.78% (6.30%*11/12). This does not include the loss of interest whilst the money is in transit transferring the ISA (but some providers will backdate the interest to avoid you losing out on this front).

If you are able to transfer right now and the account gets transferred to Scarborough by mid-February, then you would have 13.5 months before the interest rate on the account drops, so the average interest for you would be slightly better at 5.83% (6.30%*12.5/13.5).

I'm going to avoid it given those calculations.

I'm tempted by the new Halifax ISA fixed rates (see first post of this thread which Kazza has already updated with the details) but I shall have to see what rates are available when it is time for me to transfer.

dancingfairy

I was looking at Scarborough as well - I didn't realise you lost 30 days interest AND you have to give 30 days notice. I wouldn't mind just 30 days notice though. Damit. Oh well looks like continuing with NS and I then for now. Just need to find out if I have added to it just this year as I can't remember and the damn thing locked me out. Will wait and see what April has to offer then. NS and I looks alright unless rates change again. Just can't afford a fix as have no cash reserves really apart from ISA and am saving up to pay off student overdraft.

Special_Saver2

dancingfairy, just to clarify for the Scarborough BS account:

If you want to make a withdrawal, then you can either give 30 days' notice (and not lose any interest) OR you can make an immediate withdrawal with 30 days' loss of interest.

If you want to transfer your ISA to another provider, then you cannot give 30 days' notice, your only option is to make an immediate transfer and lose 30 days' interest. (Although I say an immediate transfer, they have up to 30 days to complete the transfer - all ISA providers have to complete the transfer within 30 days plus any notice period.)

Scarborough is unusual in preventing you giving notice to transfer your account - most other providers will let you do this.

Paul_Herring

If you want to transfer your ISA to another provider, then you cannot give 30 days' notice,

Why not? Won't the following work?
To old provider: "I shall be removing my funds on <date> at the earliest" (where <date> = today + 30 days)
To new provider: "Please arrange the transfer to happen after <date>"

Or if the new provider proves intractable, simply delay submitting the transfer forms for 21 days?

Special_Saver2

I thought of the same idea but the risk is that:

Problem Scenario 1:
- you give 30 days' notice to withdraw your money
- the transfer form from the new provider does not arrive in time
- Scarborough send you a cheque for your all your money and you have lost the ISA status

Problem Scenario 2:
- you give 30 days' notice to withdraw your money
- Scarborough act on the transfer request as soon as they receive it and ignore your 30 days' notice (which they are allowed to do under their terms and conditions) and you lose 30 days' interest

Personally, I really do not want to risk scenario 1 at all!

masonic

Special_Saver2 wrote: »

Problem Scenario 1:
- you give 30 days' notice to withdraw your money
- the transfer form from the new provider does not arrive in time
- Scarborough send you a cheque for your all your money and you have lost the ISA status

If it was a transfer cheque that was meant for your new provider, then as long as it isn't processed, at your request, the money must be reinstated by your old provider. No loss of ISA status would result.

If it was not a transfer cheque and you were clear in your instructions that you wished the ISA to be transferred to a new provider, then your old provider has made an error and the money can also be reinstated.

Paul_Herring

Special_Saver2 wrote: »

Problem Scenario 1:
- you give 30 days' notice to withdraw your money
- the transfer form from the new provider does not arrive in time
- Scarborough send you a cheque for your all your money and you have lost the ISA status

Why on earth would Scarborough be sending you a cheque when you've given them notice of a transfer, not a regular withdrawl?

Edit: Spotted on the IceSave ISA transfer application form, next to the box for 'date of transfer':

(If the Mini Cash ISA you are transferring from has a notice period, please ensure the date of transfer provides sufficient time, otherwise your provider may charge you an early withdrawal penalty).

mancunian1999

I have some cash invested in sainsburys bank paying over 6% Also a little cash in the icici bank. I have never had an isa. Is it worth having one as all the rates are about the same. I have been left a small amount of money what should i do with it.