Cash ISAs: The Best Currently Available List

pecunianonolet

Fixed 1y ISA rates are diving further. Virgin now 5.5% and was 5.85% not long ago before lowered to 5.75% and now at 5.5%. All within maybe 2-3 weeks. Metro Bank 1y fix also lowered to 5.5%

Won't be long and Easy Access Cash ISA's will also dive below the 5% mark. 

refluxer

I've just opened a Barclays Premier 18 month Flexible Cash ISA because I'm starting to think that, at the rate fixed rates are sliding, 5.15% could end up being a pretty good rate for paying more in next April, when next year's ISA allowance becomes available.

For those who aren't aware, the Barclays Flexible Cash ISAs are a rare example of a fixed rate cash ISA that allows deposits throughout the duration of the fixed rate period. You can also make up to 3 penalty-free withdrawals of up to 10% of the balance each time if you find you need access to some cash in an emergency and these can be flexibly replaced.

I went for the 18 month rate despite it being slightly lower than the 12 month option because I figured that fixing anything paid in next April for the extra 6 months (until June 2025) could turn out to be the better option in the long run, if the banks' long-term predictions turn out to be true and rates are only going to head downwards.

Despite this sounding like a gamble, it actually isn't if you happen to have an easy access ISA that allows partial transfers out because you can fund the Barclays ISA with as little as £1 and I haven't spotted anything in the T&Cs that states that partial transfers-in aren't allowed (yet... I haven't actually set up the transfer yet, but will report back once I do).

One important thing to note is that I'm already a Barclays customer - to open one of these ISAs easily (if you don't have a nearby branch which allows you to make an appointment at short notice), you'll need access to their online banking and the quickest and easiest way of achieving this if you're a new customer is to open a current account, which may prove to be too big a 'hoop' for some. Also note that you only get 30 days for transferring in, so deposits beyond that time are limited to new subscriptions only.

pecunianonolet

refluxer said:

I've just opened a Barclays Premier 18 month Flexible Cash ISA because I'm starting to think that, at the rate fixed rates are sliding, 5.15% could end up being a pretty good rate for paying more in next April, when next year's ISA allowance becomes available.

For those who aren't aware, the Barclays Flexible Cash ISAs are a rare example of a fixed rate cash ISA that allows deposits throughout the duration of the fixed rate period. You can also make up to 3 penalty-free withdrawals of up to 10% of the balance each time if you find you need access to some cash in an emergency and these can be flexibly replaced.

I went for the 18 month rate despite it being slightly lower than the 12 month option because I figured that fixing anything paid in next April for the extra 6 months (until June 2025) could turn out to be the better option in the long run, if the banks' long-term predictions turn out to be true and rates are only going to head downwards.

Despite this sounding like a gamble, it actually isn't if you happen to have an easy access ISA that allows partial transfers out because you can fund the Barclays ISA with as little as £1 and I haven't spotted anything in the T&Cs that states that partial transfers-in aren't allowed (yet... I haven't actually set up the transfer yet, but will report back once I do).

One important thing to note is that I'm already a Barclays customer - to open one of these ISAs easily (if you don't have a nearby branch which allows you to make an appointment at short notice), you'll need access to their online banking and the quickest and easiest way of achieving this if you're a new customer is to open a current account, which may prove to be too big a 'hoop' for some. Also note that you only get 30 days for transferring in, so deposits beyond that time are limited to new subscriptions only.

We can only hope that the new ISA rules will spark some more competition among providers and that there will be some attractive offers in March.

subjecttocontract

kjs31 said:

I opened a Metro 12 month fixed rate ISA in branch on 27th November. It was to be funded from an easy access cash ISA with Principality Building Society. Although the transfer was via a manual form rather than electronic the Principality account was closed last week and I received a letter from them dated 28th saying that the funds had been transferred to Metro. The funds are yet to appear in my Metro account. I know that I will get interest accruing from the date of the transfer application but how long should it take Metro to apply the funds to my account so that I can actually see them? 

I'd expect it to take quite a while.
They have never offered market leading accounts before so are probably struggling to handle the demand for new accounts & transfers. Lots of their staff are young and lack experience so consequently everything takes longer. They have got 15 days (presumably working days) to complete the transfer but hell, I don't expect much would happen if they took 35 days or more to complete. Let's face it, if they took 15 weeks to transfer it the only ones who would suffer would be Metro Bank. Sit back, stop worrying, put your feet up and wait for the confirmation letter to drop thru your letterbox saying it's all done.

kjs31

subjecttocontract said:

They have got 15 days (presumably working days) to complete the transfer but hell, I don't expect much would happen if they took 35 days or more to complete. Let's face it, if they took 15 weeks to transfer it the only ones who would suffer would be Metro Bank. Sit back, stop worrying, put your feet up and wait for the confirmation letter to drop thru your letterbox saying it's all done.

I have 30 days (I think) to fund the account. I’m not planning on using this year’s ISA subscription for this account so it’s only the transfer money being credited. I guess I’m concerned that they might close the account after 30 days if the balance is zero leaving my transfer money in the abyss. 

refluxer

kjs31 said:

subjecttocontract said:

They have got 15 days (presumably working days) to complete the transfer but hell, I don't expect much would happen if they took 35 days or more to complete. Let's face it, if they took 15 weeks to transfer it the only ones who would suffer would be Metro Bank. Sit back, stop worrying, put your feet up and wait for the confirmation letter to drop thru your letterbox saying it's all done.

I have 30 days (I think) to fund the account. I’m not planning on using this year’s ISA subscription for this account so it’s only the transfer money being credited. I guess I’m concerned that they might close the account after 30 days if the balance is zero leaving my transfer money in the abyss. 

ISA providers often state that they'll waive the funding window provided a transfer request has at least been received and is therefore in progress, but you'd have to read Metro's T&Cs to see if they do the same.

Paper transfers can sometimes take a good few weeks to complete and I've found that even the big banks and building societies can sometimes take an age to credit the new account, while your money sits in limbo between the two.

subjecttocontract

But Metro pay their interest rate from the date that you instruct them to start the transfer. So money sitting in limbo is of no consequence to the applicant as they are already being paid. Metro are the only losers (& of course their shareholders) when an ISA transfer 'IN' is delayed or takes a long time.

refluxer

subjecttocontract said:

But Metro pay their interest rate from the date that you instruct them to start the transfer. So money sitting in limbo is of no consequence to the applicant as they are already being paid. Metro are the only losers (& of course their shareholders) when an ISA transfer 'IN' is delayed or takes a long time.

Yes - that's true, but the concern expressed in the previous post was about what happens if an ISA transfer extends beyond the funding window for a fixed rate ISA, which is a legitimate concern because not all providers make it clear in their T&Cs what happens in this scenario.

Some people also have huge sums saved in cash ISAs and if they don't have a lot of experience with transfers and the length of time these can often take (when paper-based, especially), it can be unsettling to see that money disappear for a long length of time.

subjecttocontract

refluxer said:

subjecttocontract said:

But Metro pay their interest rate from the date that you instruct them to start the transfer. So money sitting in limbo is of no consequence to the applicant as they are already being paid. Metro are the only losers (& of course their shareholders) when an ISA transfer 'IN' is delayed or takes a long time.

Yes - that's true, but the concern expressed in the previous post was about what happens if an ISA transfer extends beyond the funding window for a fixed rate ISA, which is a legitimate concern because not all providers make it clear in their T&Cs what happens in this scenario.

Some people also have huge sums saved in cash ISAs and if they don't have a lot of experience with transfers and the length of time these can often take (when paper-based, especially), it can be unsettling to see that money disappear for a long length of time.

Yes I understand that but ......the post from kjs31 told us that they had opened a new Metro ISA on 27th November. Principality B/S had transferred the funds to Metro the following day, 28th November......it could hardly have happened any quicker. Therefore the transfer has not been delayed, it's Metro Bank responsibility to progress the transfer and show the credit in the account. If it did exceed the 30 day deadline Metro Bank would likely only have themselves to blame and little or no defence. 

We had 2 ISA transfer this time last year that suffered lengthy delays but there was an intermittant postal strike taking place. There were no issues raised with the transfers even though they exceeded the deadline.

refluxer

Just a heads-up for any existing Leek Building Society members - they currently have some pretty competitive 'existing customer only' fixed rate cash ISAs available to anyone who's had an account with them for the last 12 months or more. These accounts don't feature on the comparison sites (as they're not available to all), so could be easily overlooked.

These are the rates (with the current market leaders in brackets for comparison)...

1 year - 5.50%  (Virgin Money 5.50% - current account holders only) 
2 years - 5.55%  (Zopa 5.07% - transfers-in not allowed)
5 years - 5.00%  (UBL 4.81%)

You can open and manage the ISAs online but Leek don't use the BACs ISA transfer service so if you want to transfer-in, you'll need to download a transfer form and post it off or visit a branch. The deposit field on the online application can be your intended cash deposit or the amount you intend to transfer-in. You get 30 days to fund the accounts.

These rates have been around since October and weren't particularly great at the time, but have become competitive now since rates elsewhere have fallen. I'm actually surprised they're still around - particularly the 2 year rate, as it's so much higher than anything else currently available. If you think you might want to open one of these, I wouldn't hang about.