Cash ISAs: The Best Currently Available List

Steve_xx

pecunianonolet said:

If I open a 1y fix today over 10k, I won't be able to open another cash ISA in the same tax year, right? So if I not fund the fix in full, I miss the remaining 10k allowance because I can only have one account per tax year?

That is correct. If you want to continue to fund it, you will need to open an easy access ISA.

Nick_C

Correct.  But you can transfer an existing ISA and separately fund a new one, provided that you do not add any new money to the transferred ISA. 

refluxer

pecunianonolet said:

If I open a 1y fix today over 10k, I won't be able to open another cash ISA in the same tax year, right? So if I not fund the fix in full, I miss the remaining 10k allowance because I can only have one account per tax year?

You're not limited to having one ISA account per tax year as such, but you can only make new deposits from the current tax year into one cash ISA at any one time so if you open a fixed rate ISA with a limited funding window and only partially fund it, then yes - this means you can't open another... at least not without doing an early transfer into another ISA where this is possible and paying a big penalty.

It's rare, but there are a few banks who allow you to contribute to a fixed term ISA throughout it's duration. Barclays are one, with their 1 & 2 Year 'Flexible Cash ISAs', but the rates are poor (similar to easy access rates). Shawbrook are another, but with much better rates - in fact, their 1 year fix is one of the best currently available.

If the Shawbrook ISA is of interest, then make sure you read the T&Cs yourself to satisfy yourself that this is actually possible, but I thought this line from the 1 year fixed rate ISA T&Cs looked pretty clear.... "Please note that the Bank reserves the right to withdraw this product at any time. If the product is withdrawn, you can continue to put more money into your account until the expiry of the fixed term"

pecunianonolet

Thanks, thinking of using a flexible ISA to drip feed regular savers for some time. Have only £150 left for this tax years PSA with expected interest coming in over the tax year. Only Principality offering a fully flexible ISA at the moment at 3.1% with no restrictions. Better than leaving cash in Tandem I guess...

RG2015

pecunianonolet said:

Thanks, thinking of using a flexible ISA to drip feed regular savers for some time. Have only £150 left for this tax years PSA with expected interest coming in over the tax year. Only Principality offering a fully flexible ISA at the moment at 3.1% with no restrictions. Better than leaving cash in Tandem I guess...

Virgin Money 3.00%.

Although you may consider requiring a VM current account to be a restriction.

pecunianonolet

RG2015 said:

pecunianonolet said:

Thanks, thinking of using a flexible ISA to drip feed regular savers for some time. Have only £150 left for this tax years PSA with expected interest coming in over the tax year. Only Principality offering a fully flexible ISA at the moment at 3.1% with no restrictions. Better than leaving cash in Tandem I guess...

Virgin Money 3.00%.

Although you may consider requiring a VM current accounts a restriction.

I have the Virgin 1y fix for 4.25% and a few days funding window left after they have withdrawn it but don't have another 20k available to put in. Would be a no brainer otherwise so was thinking to put current and future savings into a flex ISA and take out as and when required to pay for bills and to fund reg savers until PSA is used up and I have accumulated the 20k. By that time ISA rates might be in decline. Paying 40% tax on my savings just isn't really something I am keen on. 

code_hunter_2

It may be worth looking at Kent Reliance. They seem to have a longer period of time for topping up their fixed rate ISAs. 

New money for this year can be split across their cash ISAs… one of the few companies to offer this. 

pecunianonolet

code_hunter_2 said:

It may be worth looking at Kent Reliance. They seem to have a longer period of time for topping up their fixed rate ISAs. 

New money for this year can be split across their cash ISAs… one of the few companies to offer this. 

Kent Reliance ISA could basically be used in the same way as a reg saver with 10k in upfront and further contributions to fill up. 

The Shawbrook ISA @refluxer mentioned seems to be the same but at a higher rate. Can't seem to find any restrictions or a funding window and moneyfacts also claims further additions are allowed and doesn't mention any restrictions.

I think this solves a dilema I was thinking about all afternoon on how to optimise current funds, future income and stoozing debt repayments for optimal returns locking in good rates by limiting what I pax in tax. 

One last question remains, with my Virgin 1y fix I opened last tax year:

Would it work to put another 10k in so I have another 10k earning the 4.25% rate and open Kent Reliance or Shawbrook with the minimum £1,000 to lock the rate in and just make further contributions over the tax year until filled up by end of this tax year? Anticipated savings over the next 12 months will be >20k

refluxer

pecunianonolet said:

One last question remains, with my Virgin 1y fix I opened last tax year:

Would it work to put another 10k in so I have another 10k earning the 4.25% rate and open Kent Reliance or Shawbrook with the minimum £1,000 to lock the rate in and just make further contributions over the tax year until filled up by end of this tax year? Anticipated savings over the next 12 months will be >20k

If you pay £10k into the Virgin ISA from the current tax year's allowance, then you won't be able to open another cash ISA and also pay into that.

pecunianonolet

refluxer said:

pecunianonolet said:

One last question remains, with my Virgin 1y fix I opened last tax year:

Would it work to put another 10k in so I have another 10k earning the 4.25% rate and open Kent Reliance or Shawbrook with the minimum £1,000 to lock the rate in and just make further contributions over the tax year until filled up by end of this tax year? Anticipated savings over the next 12 months will be >20k

If you pay £10k into the Virgin ISA from the current tax year's allowance, then you won't be able to open another cash ISA and also pay into that.

Ok, was hoping funding and opening are two pairs of shoes because the Virgin ISA was opened early March so old tax year and that I can open another ISA in this fiscal. Would have been the ideal scenario to add 10k of my annual allowance to Virgin and the remaining 10k of my annual allowance to another product. Anyhow, will check out Shawbrook in more detail tomorrow.