Cash ISAs: The Best Currently Available List

justforlaugh

I just tried to apply Natwest's Fixed cash ISA on-line and it reported error 'service unavailable'  at first. I tried again and it seems successful. But no account information is given at the end.  So far no update in the on-line system and no email.  Is this normal?

pecunianonolet

Am I understanding this right that I could with Natwest

1. Open the ISA, and fund it with max 20k, interest, as T&C' state, is paid from the day the funds are in at 5.9%  (2y fix). The lock applies from 1st September.

2. On 31st August, I withdraw the 20k plus any interest and close the ISA

3. The time from now till 1st September is basically a long cooling off period and by taking funds back out I am not loosing my annual allowance as I technically "changed my mind"?

4. 20k for 30 days at 5.9% would be £96.99 tax free interest?

For Virgin:

1. I open the 3y ISA fix at 5.55%, put 20k in.

2. On day 13 I either downgrade to 2y fix or should the 3y has a new higher rate upgrade.

3. Interest of £39.53 for 13 days is paid, tax free 

4. Cooling off of up or downgraded ISA starts again.

5. On day 13 I up or downgrade again

6. Repeat above steps 2 - 5 "indefinitely"

--> Probably not without risk and they might decide at some point you are not a desired customer and you get blocked for taking the p***
 

Silverweed

pecunianonolet said:

Silverweed said:

Interesting to read about flexible Isas on here. Just a quick question please - if you open a fixed term one that has flexible status, although you can replace Isa monies withdrawn, is there still a penalty/charge for withdrawing from a fixed issue in this scenario?

Flexible ISA's are always easy access ISA's. For a fixed ISA you waive the right for unrestricted access. You can access your money, move to a different provider, upgrade or downgrade the length of the fix, etc. only within the cooling off period. Once that period is over you have made a commitment and the money is locked in. You can still access that money in an emergency but that comes with an interest penalty, so you could receive less as you initially put in. There is a calculator on MSE to work out at what point it makes sense to pay the penalty and fix for a higher rate. To give an example, I fixed at 4.21% in April for 1 year (mistake) and now a new 1y fix ISA would need to pay me 6.7% just to break even considering the penalty so I have to wait until maturity and hope rates are still as high as they are now.

Thanks for the clarity. I had been looking at some fixed Paragon Isas which appeared to also be flexible but I've looked at so many different Isa's now I think I've got confused. It's nice to have so much choice of decent rates though after being low for so long. Thanks also for the info about the MSE Isa calculator, that looks like a very useful tool if considering ditching. I remember thinking rates may have peaked back in April so can quite understand fixing then, fingers crossed rates remain high 'ish when your fix matures.

Growingold

Silverweed said:

Interesting to read about flexible Isas on here. Just a quick question please - if you open a fixed term one that has flexible status, although you can replace Isa monies withdrawn, is there still a penalty/charge for withdrawing from a fixed issue in this scenario?

A fixed term ISA has a fixed rate and is not flexible ie you cannot take money out and put it back in the same tax year.  They are not designed to take money out of until they mature.  You can however access your money by paying a penalty depending on the term length of the ISA.
Variable Rate ISA's which are instant access can be flexible and non flexible depending on the lender.  I prefer the flexible ones as you can take out and put back in the money taken out without it affecting your allowance for that tax year.  

savit4l8er

justforlaugh said:

I just tried to apply Natwest's Fixed cash ISA on-line and it reported error 'service unavailable'  at first. I tried again and it seems successful. But no account information is given at the end.  So far no update in the on-line system and no email.  Is this normal?

Mine seems to have don't the same, I don't have any existing NW facilities.
Said they need more info and will send an email but nothing as yet.
I think that might be the ISA transfer details as I have not entered them online but who knows. 

drphila

Just opened a 2yr non-isa with RBS (as yet unfunded) to take advantage of a similar (though slightly shorter) apparent extended "cooling off" period. As existing customer, literally took 2 minutes.

I would also have opened the equivalent isa for the same reason, but the problem I see with that is that I will be forced to put the funds into the best-rate product on 4 Sept. Whereas I think it is probable that isa rates will be increasing well beyond that.

The RBS/NW non-isa offering is interesting in that, despite being fixed rate and term, early access is available through 35-day notice closure with a penalty of the lower of the amount of interest earned on your account or 90 days’ interest.

2010

If there is a lot of hassle and hoop jumping and delay with NatWest ISA, they can keep it. Other providers seem to get theirs up and running/"instantly".

flobbalobbalob

I'm beginning to think that a fixed saving of any sort can end in tears.

2010

flobbalobbalob said:

I'm beginning to think that a fixed saving of any sort can end in tears.

Probably, unless the rises are coming to an end. Remember a good while ago, I fixed with NBS for five years at 5% just before rates started their long decline.

savit4l8er

2010 said:

If there is a lot of hassle and hoop jumping and delay with NatWest ISA, they can keep it. Other providers seem to get theirs up and running/"instantly".

It's looking like there might be, not knowing if the application is successful or whether more info really is needed or not isn't very customer friendly. One could miss out on something else waiting for them to grace you with their decision and the outcome. Never had anything to do with them and ideally didn't want it but envisaged a short relationship.
Have not had to wait for the result of any other ISA. Hope it's not a case of offer it without considering the potential demand.