Cash ISAs: The Best Currently Available List

Eirambler

If I was concerned about potential issues it would be Metro Bank I'd be steering clear of moreso than Virgin...

subjecttocontract

Eirambler said:

If I was concerned about potential issues it would be Metro Bank I'd be steering clear of moreso than Virgin...

Metro Bank has FSCS protection just like most other banks so any savings (£85K max)with them is safe. According to the report I read they have now resolved their financial issue although their stock value is significantly below what it was 5 years ago.

Virgin also have FSCS protection but they have all sorts of operational issues. Many on this forum have experienced problems with them, me included.

Eirambler

I'd still bank with Virgin every day of the week before I'd go near Metro. 85k protection is a useful backup to have for peace of mind, but you could be waiting a while to be paid back so I'd much rather bank with an organisation where I'm confident that it will never be needed. Which therefore instantly rules out Metro for me.

duckson

Gatehouse 5.15% not available, under review.

subjecttocontract

Eirambler said:

I'd still bank with Virgin every day of the week before I'd go near Metro. 85k protection is a useful backup to have for peace of mind, but you could be waiting a while to be paid back so I'd much rather bank with an organisation where I'm confident that it will never be needed. Which therefore instantly rules out Metro for me.

No UK bank or building society has ever gone bust but if they did the FSCS says that they aim to pay out within 7 days. The guarantee is £170K for joint accounts. I feel so negative about Virgin that I would prefer to bank with virtually anyone before choosing them.....I wouldn't touch Virgin with your bargepole.

Dustykitten

I have a Coventry fixed isa at 3.9% not maturing until February 2025.  Obviously not great now.  I know there is a 180 interest penalty fee.  Does this mean I would still get interest on the days since last interest paid (May 2023) but would then lose it plus a little or that you don't get the interest and pay the penalty - hope this makes sense. Trying to work out how much higher the potential new isa would need to be paying to make it worthwhile, thanks.

lucky77

Hinckley & Rugby 5 year 4.9% FR ISA - If you are thinking of transferring isa to H&R please note they do not allow transfers in from other organisations:

"At the time of opening you may add existing Hinckley & Rugby ISA funds.

Hinckley & Rugby Building Society does not accept the transfer of ISAs from other savings organisations."

Ocelot

Dustykitten said:

I have a Coventry fixed isa at 3.9% not maturing until February 2025.  Obviously not great now.  I know there is a 180 interest penalty fee.  Does this mean I would still get interest on the days since last interest paid (May 2023) but would then lose it plus a little or that you don't get the interest and pay the penalty - hope this makes sense. Trying to work out how much higher the potential new isa would need to be paying to make it worthwhile, thanks.

You would lose a sum commensurate to 180 day's interest if transferring. You would not additionally lose other interest.

For example if you had 10,000 at 4%, with an 180 day penalty, you'd pay 197.26 only (180/365 * 400), irrespective of how much interest you may or may not have already earned on the ISA.

subjecttocontract

Dustykitten said:

I have a Coventry fixed isa at 3.9% not maturing until February 2025.  Obviously not great now.  I know there is a 180 interest penalty fee.  Does this mean I would still get interest on the days since last interest paid (May 2023) but would then lose it plus a little or that you don't get the interest and pay the penalty - hope this makes sense. Trying to work out how much higher the potential new isa would need to be paying to make it worthwhile, thanks.

Assuming you are 9 months into a 2 year ISA @3.9%pa with a 180 day penalty and starting with £50K you'd  need a new ISA paying around 5.5% to break even at 24 months.

Reed_Richards

Ocelot said:

You would lose a sum commensurate to 180 day's interest if transferring. You would not additionally lose other interest.

For example if you had 10,000 at 4%, with an 180 day penalty, you'd pay 197.26 only (180/365 * 400), irrespective of how much interest you may or may not have already earned on the ISA.

But the calculation is usually made from the date of closure so the £10,000 in the above example would be the amount in your account after all accrued interest up until the date of closure had been added.