Cash ISAs: The Best Currently Available List

sammy_zammy

surreysaver said:

I think it's misleading to use the term 'AER' when the rate finishes after three months.
I made this argument when Principality launched their 6 month regular savers, but people disagreed with me

Because it’s not misleading at all. Interest is calculated daily, and the AER is the standardised measure of representing the interest. That’s why it’s called the “annual equivalent rate”.

If it were a fixed term account that you couldn’t easily leave I’d at least get where you’re coming from. But it isn’t. I want to know how much interest my money is earning on a given day.

jimexbox

Vanquis have a one year fix at 4.51 AER, and two year fix at 4.42% AER. 

Transfers accepted, 30 day funding window.

Beeblebr0x

2010 said:

Earn a market-leading 5.32%* AER (variable) with the Moneybox Cash ISA

Open or transfer an account in minutes before the tax year ends on 5th April. 

• Underlying rate of 4.20% AER (variable) with a 1.12% fixed 3 month bonus

• Save £20,000 a year with tax-free interest

• Minimum balance £500

• Up to 3 withdrawals every 12 months without impacting your rate

Having opened a Moneybox variable cash ISA in January, I'm now thinking whether it would be better to transfer it into a fixed cash ISA as rates are predicted to go down in May

FishInGlass

Having opened a Moneybox variable cash ISA in January, I'm now thinking whether it would be better to transfer it into a fixed cash ISA as rates are predicted to go down in May

I had exactly the same thought. I opened mine in December from a maturing Virgin cash ISA. Last month I decided to transfer out about 50% of the current capital to a new Coventry cash ISA. The process took over a month but fortunately the Moneybox ISA was still paying above the rate for the new fix. I'll probably keep the remainder in Moneybox until my 1yr 0.47% bonus ends.

northernstar007

jimexbox said:

Vanquis have a one year fix at 4.51 AER, and two year fix at 4.42% AER. 

Transfers accepted, 30 day funding window.

this is what ive been looking at for when virgin rate drops
i know funds are protected upto £85k but reading online the bank made a loss last year should i be worried 

Nick_C

rallycurve said:

Nick_C said:

Principality implemented electronic ISA transfers in November last year.

Thanks for this. Is there anything in their website or somewhere mentioning this?

Because their online guidance for transfers in still says you have to post a form or visit a branch. And providers who only accept electronic transfers in won't let you select Principality to transfer from.

I wonder if this is all still in the process of being updated. Or maybe they do send the money electronically but the transfer application has to still be done by post? It seems confusing

This was information I got from them over the phone.  But I was transferring out (to Skipton), not in.  The transfer took two days. 

slinger2

Shawbrook 1 year fixed rate cash ISA is now 4.52%AER (issue 117) a marginal increase. Minimum £1k.

As is generally the case for Shawbrook: "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" This relates to new money. Transfers in should be made at opening, although it says "Transfer requests received after your initial account application may be refused."

surreysaver

sammy_zammy said:

surreysaver said:

I think it's misleading to use the term 'AER' when the rate finishes after three months.
I made this argument when Principality launched their 6 month regular savers, but people disagreed with me

Because it’s not misleading at all. Interest is calculated daily, and the AER is the standardised measure of representing the interest. That’s why it’s called the “annual equivalent rate”.

If it were a fixed term account that you couldn’t easily leave I’d at least get where you’re coming from. But it isn’t. I want to know how much interest my money is earning on a given day.

It is confusing and misleading, as you would need to leave that money in there for a year to earn that rate. Which it won't. 
I will always use the 'gross' rate for my comparisons, as that is the more accurate figure, especially when the money will be in the account for less than a year.
I note certain organisations, such as Trading 212, do not provide the gross figure. No doubt to be deliberately misleading.
If the regulator requires organisations to provide figures for comparison, for periods other than a year, then the figure for the period, in this case a quarter, should be used.

slinger2

Of course you could argue that whole concept of an annual rate is meaningless for a product that lasts less than a year, whether that AER or gross. If you take out a 6-month fixed-rate product at 4.4% (AER or gross) you actually only get roughly 2.2% interest of course.

The bonus thing is even more confusing. Suppose you get a 3-month bonus of, say, 1%. That's an increase in the annual interest rate of 1%. Over the 3 months you'll get roughly 0.25% bonus interest added. So an advertised 5.32% for 3 months is completely meaningless. You can't possibly get 5.32%. All your getting is interest added at an annualised rate of 5.32% for the next 3 months, ie 1.33% over that period of which 0.25% was the bonus (in my example of a 1% annualised bonus).

soulsaver

ISA thread?