Cash ISAs: The Best Currently Available List

honeststeveo

opened a new 1 year fixed ISA paying 5.71 earlier this week with a nominal contribution- before yesterdays rate hike. Have arranged a transfer in from prior year and planning to make a more substantial contribution for this year.

Should i hold off to see if yesterdays Boe rate rise pushes up rates or do we think this rate rise was already factored in to the savings rate?

I do have 30 days from opening to make further contributions so could delay if it's worth the extra effort.

How long to base rate rises typically take to impact the top of the fixed cash isa offering? 

t1redmonkey

honeststeveo said:

opened a new 1 year fixed ISA paying 5.71 earlier this week with a nominal contribution- before yesterdays rate hike. Have arranged a transfer in from prior year and planning to make a more substantial contribution for this year.

Should i hold off to see if yesterdays Boe rate rise pushes up rates or do we think this rate rise was already factored in to the savings rate?

I do have 30 days from opening to make further contributions so could delay if it's worth the extra effort.

How long to base rate rises typically take to impact the top of the fixed cash isa offering? 

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

honeststeveo

t1redmonkey said:

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

That makes sense. Thanks. I suppose the most suprising aspect to markets was how long rates are expected to be high for which might encourage some savings account providers to offer slightly higher rates than they were but I imagine this would only really apply to longer term fixes.

Thinking about it - based on other posts here - it sounds like i could cancel my new ISA within a cooling off period (14 days?) if lets say I notice next week that someone is offering 6%

t1redmonkey

honeststeveo said:

t1redmonkey said:

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

That makes sense. Thanks. I suppose the most suprising aspect to markets was how long rates are expected to be high for which might encourage some savings account providers to offer slightly higher rates than they were but I imagine this would only really apply to longer term fixes.

Thinking about it - based on other posts here - it sounds like i could cancel my new ISA within a cooling off period (14 days?) if lets say I notice next week that someone is offering 6%

Yes you can do that, obviously you have to factor in that after you use your cancellation rights you'll usually forfeit any interest you earned with that provider to date.  But may be worth doing if as you say a new product gets released significantly better than what you've already gone for.

bristolleedsfan

t1redmonkey said:

honeststeveo said:

t1redmonkey said:

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

That makes sense. Thanks. I suppose the most suprising aspect to markets was how long rates are expected to be high for which might encourage some savings account providers to offer slightly higher rates than they were but I imagine this would only really apply to longer term fixes.

Thinking about it - based on other posts here - it sounds like i could cancel my new ISA within a cooling off period (14 days?) if lets say I notice next week that someone is offering 6%

Yes you can do that, obviously you have to factor in that after you use your cancellation rights you'll usually forfeit any interest you earned with that provider to date.  But may be worth doing if as you say a new product gets released significantly better than what you've already gone for.

From experience and products info leaflets that I have looked at most ISA providers pay interest during 14 day cooling off period, maybe you could list some that do not from your own experience/knowledge.

UBL Bank do not pay interest during cooling off period/Close Brothers possible they do not pay interest during cooling off period

rallycurve

Cynergy online ISA up to 4.40%


This is an improvement:

The interest rate on your Online ISA has increased

We are delighted to inform you that on 4 August 2023 we increased the variable interest rate on your Online ISA Account from 4.25% AER/Gross* to 4.40% AER/Gross.

Following recent changes in the savings market we have launched a new issue of our Online ISA. As a result, in this instance, we have taken the opportunity to increase your interest rate meaning you do not need to switch to the latest issue.

Please note this is an isolated change, and does not indicate we will be increasing the interest rate on existing customer issues on an ongoing basis.

t1redmonkey

bristolleedsfan said:

t1redmonkey said:

honeststeveo said:

t1redmonkey said:

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

That makes sense. Thanks. I suppose the most suprising aspect to markets was how long rates are expected to be high for which might encourage some savings account providers to offer slightly higher rates than they were but I imagine this would only really apply to longer term fixes.

Thinking about it - based on other posts here - it sounds like i could cancel my new ISA within a cooling off period (14 days?) if lets say I notice next week that someone is offering 6%

Yes you can do that, obviously you have to factor in that after you use your cancellation rights you'll usually forfeit any interest you earned with that provider to date.  But may be worth doing if as you say a new product gets released significantly better than what you've already gone for.

From experience and products info leaflets that I have looked at most ISA providers pay interest during 14 day cooling off period, maybe you could list some that do not from your own experience/knowledge.

UBL Bank do not pay interest during cooling off period/Close Brothers possible they do not pay interest during cooling off period

Looked at 3 or 4 Ts and Cs a few months back, and all of them stated no interest is paid if cancellation rights are excercised.  Can't remember exactly which ones it was, but Oaknorth definitely have that stipulation.

bristolleedsfan

t1redmonkey said:

honeststeveo said:

t1redmonkey said:

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

That makes sense. Thanks. I suppose the most suprising aspect to markets was how long rates are expected to be high for which might encourage some savings account providers to offer slightly higher rates than they were but I imagine this would only really apply to longer term fixes.

Thinking about it - based on other posts here - it sounds like i could cancel my new ISA within a cooling off period (14 days?) if lets say I notice next week that someone is offering 6%

Yes you can do that, obviously you have to factor in that after you use your cancellation rights you'll usually forfeit any interest you earned with that provider to date.  But may be worth doing if as you say a new product gets released significantly better than what you've already gone for.

We know from this thread Virgin Money pay interest during 14 day cancellation period, my experience Shawbrook and The Westbrom BS also do, from looking around over time I would suggest minority of savings providers do not.particularly as you have only been able to name Oaknorth.

r6mile

refluxer said:

It's worth noting that that Paragon Double Access ISA is a new account which has only been available for a week - I don't remember seeing it mentioned on here before.

4.35% now makes it the highest-paying easy access (non-notice) cash ISA available.

Looks like they might be abandoning their Triple Access accounts in favour of these new Double Access accounts so I'm poised to transfer across if the Triple Access doesn't get a rate increase soon.

But that is the same rate as the new rate on the Coventry limited access ISA which allows 6 withdrawals so surely is better? Also a flexible account,
I must say I have been very impressed with Coventry increasing their rate with every BOE rate increase.

uk1

bristolleedsfan said:

t1redmonkey said:

honeststeveo said:

t1redmonkey said:

Most banks/bs's would already have been factoring in a minimum 0.25% rise for yesterday's BOE meetings with the fixed term products they already had on offer, possibly some were factoring in a 0.5% rise.  So basically it shouldn't have much impact on what's out there with fixed term products.  Usually there is only a drastic change in fixed term products on offer after a BOE meeting if they do (or announce) something the markets were really not expecting but that didn't happen yesterday.

That makes sense. Thanks. I suppose the most suprising aspect to markets was how long rates are expected to be high for which might encourage some savings account providers to offer slightly higher rates than they were but I imagine this would only really apply to longer term fixes.

Thinking about it - based on other posts here - it sounds like i could cancel my new ISA within a cooling off period (14 days?) if lets say I notice next week that someone is offering 6%

Yes you can do that, obviously you have to factor in that after you use your cancellation rights you'll usually forfeit any interest you earned with that provider to date.  But may be worth doing if as you say a new product gets released significantly better than what you've already gone for.

We know from this thread Virgin Money pay interest during 14 day cancellation period, my experience Shawbrook and The Westbrom BS also do, from looking around over time I would suggest minority of savings providers do not.particularly as you have only been able to name Oaknorth.

i agree, although it is unclear to me whether this is a law or just lottery. 

There is however a potential additional but very low value consideration.  

As the ISA is cancelled and therefore was effectively never an ISA  - the FULL annual ISA allowance entitlement therefore is then reset - then technically the interest credited to the account during the cooling period  becomes taxable.