Cash ISAs: The Best Currently Available List

AspiringPensioner

ToastLady said:

friolento said:

etienneg said:

friolento said:

... You can safely ignore such stipulation, if it has indeed been made, as it would be against ISA rules. All an ISA provider can do is limit the number of ISAs you have with them. They cannot limit the number of ISAs you have with any other provider.

... They can also not force you that you transfer any existng ISA to them, although I see they are trying to do so on their application form. That's bang out of order.

... I won't get bullied by ISA providers who don't understand what the rules are.

Could you, or anyone else, please provide a link to the official "rule" that prohibits an ISA provider from applying such restrictions? I don't know of any such "rule", but I'm happy to be corrected by anyone posting such a link.

My understanding is that ISA rules are set by law (parliament, and statutory instruments made in the prescribed form under such law). These set out the framework within which ISA providers operate. So, for example, no ISA provider can accept a contribution greater than £20,000 in any tax year.

However, they don't say that every ISA provider must offer ISAs that cover the full range of what's permitted by law. For example, fixed period and easy access ISAs. They are free to do so, but not required to do so.

Within the law, they are free to offer ISAs with restrictions of their choosing. For example, they could offer an ISA similar to a regular saver account, paying a high rate of interest but on a restricted monthly subscription amount (e.g. £250 pm for 1 year, so £3,000 in total).

And, as we read frequently on this forum, no financial institution is forced to do business with everyone, as long as their refusal doesn't discriminate based on any of the legally-protected characteristics (race, gender, sexual orientation, etc.).

So I don't see why an ISA provider cannot impose restrictions within a required declaration such as have been discussed. We may not like it, but that doesn't mean they can't do it. (Personally I don't like accounts that can only be opened in branch or by post or using an app, but I don't deny that ISA providers can choose not to offer online opening if they so wish.) It may not be easily enforceable, and it may be a silly thing for them to do, but that's another matter. I'm just asking: Where is the rule that prohibits them from doing so?

There is nothing in the law which authorises an ISA provider to remove the right of the consumer to contribute to as many ISAs as they like in the same tax year.

There is probably also nothing in the law that prohibits any ISA provider from trying to take that consumer right away, because nobody expected any ISA provider to be that stupid.

In any case, it is easy enough to bypass the stupid stipulation because you don’t have to tell anyone that you have ISAs with other providers. It’s a shame that some people let themselves get bullied by providers who don’t understand the rules.

If you want two or more ISAs and really want to go with one stipulating no others allowed, open that one first, and then you will have a clear conscience that at the time you hadn't subscribed to any other ISAs. It's a really stupid and unfair policy, but up to them how they deal with things I suppose. They will never know anyway. Just so long as you don't go over your 20K allowance between however many ISAs you open.

Cheers but as I mentioned in my OP, these KR and CSB ones came out later, a few days after the new tax year started. I had already opened a Coventry fix with half of this year's allowance. 

ToastLady

flobbalobbalob said:

Eirambler said:

Has anyone with a Zopa ISA 0.5% bonus due to expire around the end of the tax year found that it's still there? Had a 0.5% bonus due to expire on 6/4, got an email saying the rate would revert down at that point, but a week on the account is still showing 4.5% including a 0.5% bonus. Can't find a more recent email confirming a new bonus?

I got the email that the 0.5% bonus was ending leaving the base of 3.8%. Then I got the email that the base rate was increasing to 4% when the bonus expires. I am now on 4% with no bonus from the 6th. 

I also got email on 21/3 saying that bonus was ending on 6th April, but never got one saying base rate was increasing, only knew about it from reading it on the forum. Sure enough rate on app had gone from 4.3% to 4.5%. Rate is still 4.50% on app, breakdown 4% variable, 0.5% fixed (no mention of length of bonus). It's a moot point for me now, as already applied to transfer elsewhere and expect that to be completed fairly soon. 

surreysaver

etienneg said:

friolento said:

... You can safely ignore such stipulation, if it has indeed been made, as it would be against ISA rules. All an ISA provider can do is limit the number of ISAs you have with them. They cannot limit the number of ISAs you have with any other provider.

... They can also not force you that you transfer any existng ISA to them, although I see they are trying to do so on their application form. That's bang out of order.

... I won't get bullied by ISA providers who don't understand what the rules are.

 So I don't see why an ISA provider cannot impose restrictions within a required declaration such as have been discussed. We may not like it, but that doesn't mean they can't do it. (Personally I don't like accounts that can only be opened in branch or by post or using an app, but I don't deny that ISA providers can choose not to offer online opening if they so wish.) It may not be easily enforceable, and it may be a silly thing for them to do, but that's another matter. I'm just asking: Where is the rule that prohibits them from doing so?

It would be illegal under anti-competition law for a provider to impose such a restriction.

ToastLady

AspiringPensioner said:

ToastLady said:

friolento said:

etienneg said:

friolento said:

... You can safely ignore such stipulation, if it has indeed been made, as it would be against ISA rules. All an ISA provider can do is limit the number of ISAs you have with them. They cannot limit the number of ISAs you have with any other provider.

... They can also not force you that you transfer any existng ISA to them, although I see they are trying to do so on their application form. That's bang out of order.

... I won't get bullied by ISA providers who don't understand what the rules are.

Could you, or anyone else, please provide a link to the official "rule" that prohibits an ISA provider from applying such restrictions? I don't know of any such "rule", but I'm happy to be corrected by anyone posting such a link.

My understanding is that ISA rules are set by law (parliament, and statutory instruments made in the prescribed form under such law). These set out the framework within which ISA providers operate. So, for example, no ISA provider can accept a contribution greater than £20,000 in any tax year.

However, they don't say that every ISA provider must offer ISAs that cover the full range of what's permitted by law. For example, fixed period and easy access ISAs. They are free to do so, but not required to do so.

Within the law, they are free to offer ISAs with restrictions of their choosing. For example, they could offer an ISA similar to a regular saver account, paying a high rate of interest but on a restricted monthly subscription amount (e.g. £250 pm for 1 year, so £3,000 in total).

And, as we read frequently on this forum, no financial institution is forced to do business with everyone, as long as their refusal doesn't discriminate based on any of the legally-protected characteristics (race, gender, sexual orientation, etc.).

So I don't see why an ISA provider cannot impose restrictions within a required declaration such as have been discussed. We may not like it, but that doesn't mean they can't do it. (Personally I don't like accounts that can only be opened in branch or by post or using an app, but I don't deny that ISA providers can choose not to offer online opening if they so wish.) It may not be easily enforceable, and it may be a silly thing for them to do, but that's another matter. I'm just asking: Where is the rule that prohibits them from doing so?

There is nothing in the law which authorises an ISA provider to remove the right of the consumer to contribute to as many ISAs as they like in the same tax year.

There is probably also nothing in the law that prohibits any ISA provider from trying to take that consumer right away, because nobody expected any ISA provider to be that stupid.

In any case, it is easy enough to bypass the stupid stipulation because you don’t have to tell anyone that you have ISAs with other providers. It’s a shame that some people let themselves get bullied by providers who don’t understand the rules.

If you want two or more ISAs and really want to go with one stipulating no others allowed, open that one first, and then you will have a clear conscience that at the time you hadn't subscribed to any other ISAs. It's a really stupid and unfair policy, but up to them how they deal with things I suppose. They will never know anyway. Just so long as you don't go over your 20K allowance between however many ISAs you open.

Cheers but as I mentioned in my OP, these KR and CSB ones came out later, a few days after the new tax year started. I had already opened a Coventry fix with half of this year's allowance. 

Sorry, I must have skimmed by that bit. KR and CSB have a real cheek with these silly and apparently unlawful (going by Masonic's post on Consumers Rights Act 2015) stipulations. It sounds as if they have never revised their policies since the change in ISA's came into force from 6th April 24.

Kim_13

Those allowing a fix to be paid into for the duration of the term might argue that not allowing* Cash ISAs to be subscribed to with another provider isn’t unfair - you’re not prevented from using your remaining allowance, or forced into using a S&S ISA in order to do so. From their perspective, it’s a price you pay for holding an ISA with more favourable terms than you would find elsewhere.

*In practice, it’s not theirs to not allow and even if it were, it’s not enforceable. Only HMRC know what you have paid in where and are hardly going to tell one provider what you have subscribed elsewhere - that would surely be a breach of data protection. HMRC only need to tell a provider if a subscription they hold is invalid - and if so, they wouldn’t need to know anything more than what HMRC want them to do about it; the why isn’t their concern.

Ignore, open with a provider with such a clause first so that you aren’t making a false declaration or avoid as per your preference. But I wouldn’t suggest anyone contacts a provider with favourable terms complaining about not being able to open a Cash ISA elsewhere by the letter of their terms - they would be more likely to follow everyone else with 14/30 day funding windows while saying you’re free to open many Cash ISAs as you like than to remove said unenforceable term and nothing else.

yourlocalcheesemonger

Any opinions on XTB cash ISA paying out 6.5% on uninvested cash. The only thing is the website reminds me of FTX with it's celebrity endorsements https://www.xtb.com/en/isa

Also what about CMC's cash ISA paying 5.7%? Although this is in QMMFs so slightly more risky. https://www.cmcinvest.com/en-gb/cash-isa 

I just wonder why people are going for Monument's 4.76%.

10_66

yourlocalcheesemonger said:

Any opinions on XTB cash ISA paying out 6.5% on uninvested cash. The only thing is the website reminds me of FTX with it's celebrity endorsements https://www.xtb.com/en/isa

Also what about CMC's cash ISA paying 5.7%? Although this is in QMMFs so slightly more risky. https://www.cmcinvest.com/en-gb/cash-isa 

I just wonder why people are going for Monument's 4.76%.

From what I can see for XTB, it doesn't say it's a Cash ISA and, at the bottom of the page it states "Capital at risk. The value of your investments may go up or down. Tax treatment depends on your individual circumstances and ISA regulations which may change. A 2% AER boost will be added to the standard variable interest rate on your free ISA funds for the first 90 days. T&Cs apply."

slinger2

10_66 said:

yourlocalcheesemonger said:

Any opinions on XTB cash ISA paying out 6.5% on uninvested cash. The only thing is the website reminds me of FTX with it's celebrity endorsements https://www.xtb.com/en/isa

Also what about CMC's cash ISA paying 5.7%? Although this is in QMMFs so slightly more risky. https://www.cmcinvest.com/en-gb/cash-isa 

I just wonder why people are going for Monument's 4.76%.

From what I can see for XTB, it doesn't say it's a Cash ISA and, at the bottom of the page it states "Capital at risk. The value of your investments may go up or down. Tax treatment depends on your individual circumstances and ISA regulations which may change. A 2% AER boost will be added to the standard variable interest rate on your free ISA funds for the first 90 days. T&Cs apply."

Yes, it's very confusing that some are calling this a "cash ISA" when it seems it's a "Stocks & shares ISA". They're quite different things. Let's get it right.

flaneurs_lobster

slinger2 said:

Yes, it's very confusing that some are calling this a "cash ISA" when it seems it's a "Stocks & shares ISA". They're quite different things. Let's get it right.

From their website 

Please note that we currently offer a Flexible Stocks and Shares ISA only.

Eirambler

ToastLady said:

flobbalobbalob said:

Eirambler said:

Has anyone with a Zopa ISA 0.5% bonus due to expire around the end of the tax year found that it's still there? Had a 0.5% bonus due to expire on 6/4, got an email saying the rate would revert down at that point, but a week on the account is still showing 4.5% including a 0.5% bonus. Can't find a more recent email confirming a new bonus?

I got the email that the 0.5% bonus was ending leaving the base of 3.8%. Then I got the email that the base rate was increasing to 4% when the bonus expires. I am now on 4% with no bonus from the 6th. 

I also got email on 21/3 saying that bonus was ending on 6th April, but never got one saying base rate was increasing, only knew about it from reading it on the forum. Sure enough rate on app had gone from 4.3% to 4.5%. Rate is still 4.50% on app, breakdown 4% variable, 0.5% fixed (no mention of length of bonus). It's a moot point for me now, as already applied to transfer elsewhere and expect that to be completed fairly soon. 

Yes, we're the same. Am intending to merge another ISA into it as there's supposed to be a further bonus if you do that before June, so will see what happens once that transfer is complete.