Cash ISAs: The Best Currently Available List

obsessed_saver

mancunian1999 wrote: »

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.

Yes, definitely! Because interest earned on cash ISAs are tax free while your Sainsburys bank and ICICI bank are paying 20% tax (or 40% tax if you're in the higher income band).

But be careful that you only store away cash that won't need in the short term in the cash ISA because there is an annual limit how much you can put in, and if you make a withdrawal, you won't be able to put anymore in once you've reached that limit (£3000 this tax year until April 08). Next tax year, the limit will increase to £3600.

shepwood

Just set to apply for the one year fix at 6.4% only to find they are dropping the rate from 18 Jan, wondered if the people having applied at 6.4 will not actually get the headline rate when their transfer is received?

The 6.4 was only available for 7 days, sneaky

agal

I had been thinking of moving into this but glad now that I didn't - would have been stuck for 4 years at 5.5%

Kazza242

shepwood wrote: »

Just set to apply for the one year fix at 6.4% only to find they are dropping the rate from 18 Jan, wondered if the people having applied at 6.4 will not actually get the headline rate when their transfer is received?

The 6.4 was only available for 7 days, sneaky

I can't say I'm surprised that they've cut the rate after only a week. There are calls for the MPC to cut BOE base rate next month. I suspected that this rate wouldn't be around for long.

The Halifax new fixed rates have been added to the first post.

masonic

Bump ________

pegginout

can any of you lovely people help me?
My friends husband has died, leaving her a lump sum of approx 40k, she's got a mini isa and has whacked her allowance in for this year.
I have read some of this thread but from what i can gather she can only put 3k a year into the isa, leaving her 37k to invest elsewhere.
Where can she put the rest to make it safe but get good interest?
She doesn't want to use the stock market, too risky.
any advice will be appreciated

Liz_the_Whizz

Just noticed that the Cheshire Building Society 12 month Fixed Rate ISA 11th issue closed yesterday.

Their new 12th issue Fixed Rate ISA (from 23/1/08) pays only 5.6% against 6.25% for the last issue.

A sign of things to come, no doubt .

Liz_the_Whizz

pegginout wrote: »

can any of you lovely people help me?
My friends husband has died, leaving her a lump sum of approx 40k, she's got a mini isa and has whacked her allowance in for this year.
I have read some of this thread but from what i can gather she can only put 3k a year into the isa, leaving her 37k to invest elsewhere.
Where can she put the rest to make it safe but get good interest?
She doesn't want to use the stock market, too risky.
any advice will be appreciated

pegginout

Sorry to hear about your friend's loss.

You would be better posting in the main savings & investments board (or perhaps some kind person will move this;) ).

But for starters, she could put the money into an easy access internet account such as Icesave @ 6.3% gross.

If she thinks she doesn't need to touch some of the money for a while, now would be a very good time to go for a fixed term bond as many are predicting interest rate falls in the next few months. Again Icesave have a 1 year bond @ 6.7% (I haven't got shares, honest, just they do have a very good savings range).

And in April 2008 when we get to the new tax year, she can put another £3.2k into a Cash ISA. Again Icesave is looking good @ 6.1% but she should check this thread at the time for the latest offerings.

Depending on her tax position, National Savings & Investment Index-linked Certificates look pretty good at the mo with inflation riding high. They are tax-free too.

Maybe when things are on an even keel, she should then look at pension provision to ensure she will be financially OK in the future.

Mikeyorks

pegginout wrote: »

....... leaving her 37k to invest elsewhere.
Where can she put the rest to make it safe but get good interest?
She doesn't want to use the stock market, too risky.
any advice will be appreciated

Preserve £3.6k to put into her ISA immediately after 5.4.08. Put £10k or £15k into NS&I index linked Certificates (tax free) and £23.4k or £18.4k into Northern Rock 1 year fixed rate Bond at 6.9%.

(she will probably need to move quickly on the NR offer - despite it was only announced today)

pegginout

Liz
Ive started a new thread about the 40k!
thanks for advice!