Cash ISAs: The Best Currently Available List

Kazza242

Suzey wrote: »

I was having the same dilemma (NS&I for 2006-7) but have decided to go with Barclays for 2007-8.

Reasoning:
- Barclays pays more interest at this moment
- We'd need another two 0.25 percentage point increases in base rate for the NS&I rate to be better than the Barclays one
- If this happens, NS&I will be 0.15% better than Barclays. I won't lose too much sleep over that (the rest of my cash is with YBS at 5.65%)
- If base goes even higher and looks like staying there for a while, I can transfer out of Barclays

I agree with you here. I'm going for the Barclays ISA for the same reasons. 6.50% for 1 year is too good a rate to pass up and is even better for those people who haven't yet used their 2006/07 allowance as they can deposit up to £6,000. I would also add to your list of points, that the Barclays ISA makes sense to me because I am an existing customer (current account, 12.5% regular saver). It would be silly of me to pass it up.

The NS&I rate guarantee expires from April 5th 2008. If they don't extend this guarantee then the rate reverts to just 5.25% (provided BOE base rate remains at that rate). After 1 year the Barclays ISA rate will revert to 5.50%, not the best rate available, but better than Halifax's ISA Saver Direct (at 5.30%).

There have been a number of posts on the programme that aired the other day, regarding Barclays misselling some of their products. I'm not going to let that put me off their ISA, because many financial institutions do the same thing. If you read any money newspaper supplement you'll see letters from customers of various banks complaining about the same thing. Almost everytime I've opened an account with a bank/BS they have tried to sell me another product that is useless to me but I simply don't agree to it.

gelato_cat

Kazza242 wrote:

I agree with you here. I'm going for the Barclays ISA for the same reasons. 6.50% for 1 year is too good a rate to pass up and is even better for those people who haven't yet used their 2006/07 allowance as they can deposit up to £6,000.

I've noticed that if you don't contribute to it in any one tax year, you have to open a new ISA when you do want to contribute again (might be the same for my other ISAs, can't remember). I'll be surprised if they are the best buy this time next year though...

Kazza242 wrote:

I would also add to your list of points, that the Barclays ISA makes sense to me because I am an existing customer (current account, 12.5% regular saver). It would be silly of me to pass it up.

So when will the money hit your ISA? I'll lose at least a week's tax-freedom given where Easter sits this year as I'll be doing a BACS/standing order once I have my account details ie after April 6th. I don't feel good about giving them a cheque for £3k with the application form - some people have reported not being given a receipt/having to ask for one and if I hand over a £3k cheque now I'm sure the money will disappear from my current account LONG before the new ISA is even open.

Kazza242 wrote:

The NS&I rate guarantee expires from April 5th 2008.

Yes, which seems to be something that people are forgetting. NS&I or Barclays, the offer will still expire in a year's time. I should have put that in my list

Kazza242 wrote:

There have been a number of posts on the programme that aired the other day, regarding Barclays misselling some of their products. I'm not going to let that put me off their ISA, because many financial institutions do the same thing. If you read any money newspaper supplement you'll see letters from customers of various banks complaining about the same thing.

I saw one today where a woman had been paying for payment protection on her CC for nine years and she had been unemployed since before she got the card so it was useless to her. She managed to get a refund from the CC company! I was shocked that she had paid this fee over 100 times and never once questioned it. Of course, it was the bank's fault...

Kazza242 wrote:

Almost everytime I've opened an account with a bank/BS they have tried to sell me another product that is useless to me but I simply don't agree to it.

They can't sell me what I don't want to buy although I'll admit if they start ringing me all the time my patience is going to wear thin. It's hard to say no sometimes, but having read about other people's experiences I'm going to be strong when I go in and apply for my account!

Suze

Kazza242

Suzey wrote: »

I've noticed that if you don't contribute to it in any one tax year, you have to open a new ISA when you do want to contribute again (might be the same for my other ISAs, can't remember). I'll be surprised if they are the best buy this time next year though...

You're almost correct. Providers don't require you to open a new ISA if you don't contribute to an isa with them in any tax year. You just have to reapply. The funds are then added to the existing ISA balance. I wonder if you misunderstood the part where I said some people can deposit up to £6K(?). I meant the savers who have yet to use their allowance for 2006/07. They could deposit up to £3K before Apr 5th '07 and then deposit another £3K from Apr 6th. They would earn 6.50% on all of it.

Suzey wrote:

So when will the money hit your ISA? I'll lose at least a week's tax-freedom given where Easter sits this year as I'll be doing a BACS/standing order once I have my account details ie after April 6th.

I'm not sure, as April 6th falls on Good Friday Barclays won't be open. Barclays' ISA application form allows you to select the year you wish to invest, so I wonder if it might be worth handing the form in before April 6th (say April 5th in the afternoon). There is a slight risk here though, as they may open it for 2006/07. Otherwise, I might go to my local branch on Saturday April 7th to open it.

Suzey wrote:

They can't sell me what I don't want to buy although I'll admit if they start ringing me all the time my patience is going to wear thin. It's hard to say no sometimes, but having read about other people's experiences I'm going to be strong when I go in and apply for my account!

Me too. Whenever I open an account I ensure that that's all I sign up for. When you open your ISA make sure you don't accept any marketing via the post, phone etc.

Bhamstudent

Kazza

Noticed you've added the National Counties Guaranteed 2007/8 ISA to the list, and that you've said it looks like one to avoid.

I'm guessing thats because of the 10 days loss of interest?

If thats the case I wondered if you should make it clear that the 10 days loss only applies in the first year, as the ISA reverts to their standard T&C's from the start of the 2008/9 tax year.

Thanks for the great list though - its invaluable.

Ladygrim

Hi everyone.

I hope you can help me. I will soon be getting an inheritance from my parents and I want to be able to save some money in a mini cash ISA.
I was looking at the Barclays Tax Beater Cash ISA and was wondering if I opened it BEFORE 5th April with, say, £10.00, could I then add the rest of the £3000 to it after the 6th April?

Or would I not be able to add to it after 6th April 2007?

Am I also right in thinking this would than max out my allowance for 2006/2007 and would not have any affect on the allowance for 2007/2008?

Not having had this amount of money beofre, Im reluctant to do the wrong thing with it and waste it.

Thanks for your help.

LG

Ladygrim

Thankyou Kazza, this has helped a lot


Quote:
Originally Posted by Ladygrim
I was looking at the Barclays Tax Beater Cash ISA and was wondering if I opened it BEFORE 5th April with, say, £10.00, could I then add the rest of the £3000 to it after the 6th April? Or would I not be able to add to it after 6th April 2007?

Each tax year, between April 6th - April 5th, we all receive a £3,000 cash isa allowance. Therefore, you can add up to £3,000 by April 5th and then from April 6th you can add up to another £3,000. If you opened the Barclays ISA with £10 by Apr 5th you would lose out on the remaining part (£2990) of your 2006/07 allowance. From Apr 6th you could add up to £3,000, but no more than that until Apr 6th 2008.


Quote:
Originally Posted by Ladygrim
Am I also right in thinking this would than max out my allowance for 2006/2007 and would not have any affect on the allowance for 2007/2008?

No, by depositing only £10 by Apr 5th you would lose £2990 of your 2006/07 cash isa allowance. If you don't use it you lose it forever. As you would be depositing £3,000 from Apr 6th you will have used all of your 2007/08 allowance.

If, after filling up your ISA, you still have more money to deposit, there are other accounts available paying high rates of interest. If you're not going to need instant access to it then consider a regular savings account e.g. Yorkshire Building Society 7% or an easy access account such as Icesave 5.70%.

Best wishes,

Kazza

stuartw101

stuartw101 wrote: »

Finally decided to go with NS&I mainly because they don't accept transfer from other isa's which would mean if i went with barclays i wouldn't be able to move the amount to NS&I. Also save the hassle of transferring etc.

Thanks to everyone's help, been looking at investing in an isa for a long time now but finally have due to the help from MSE

OK, i have changed my mind again! I have contacted NS&I asking to cancel my request for the direct isa, as i havent confirmed it yet it should be alright.

I have been persuaded to go with Barclays after seeing the most recent posts and reasoning behind choosing them. I will be going to Barclays tommorow and setting one up

I just hope i have made the right choice.

Thanks again.

Kazza242

Bhamstudent wrote: »

Kazza

Noticed you've added the National Counties Guaranteed 2007/8 ISA to the list, and that you've said it looks like one to avoid.

I'm guessing thats because of the 10 days loss of interest?

If thats the case I wondered if you should make it clear that the 10 days loss only applies in the first year, as the ISA reverts to their standard T&C's from the start of the 2008/9 tax year.

Thanks for the great list though - its invaluable.

Hi Bhamstudent - I've only just seen your post (was working from a resized window earlier!). Thanks, for the info, I'll check it out. I didn't have time to look through all the T&C's as I was posting in my work break.

pioneer31

Does anyone know if the Abbey Direct ISA will accept transfers from their 'legacy' ISA accounts? ie Remote Saver?

mike33_2

Hope kazza242 can help or anyone else,i have a 1 year fixed rate halifax isa that matures on 31st march with £3000 in it obviously opened before the current tax year and this current tax year i have a variable rate halifax isa with just £10 in because been withdrawing money from it but i have over £1200 i can still invest in this now reading previous posts i see i can still invest the £1200 plus if i want to by the 5th april or lose it forever(sorry im going on a bit) which i plan to do ,anyway im wanting to maybe go over to the new barclays isa to open in new tax year but see they dont do existing transfers or even open a isa somewhere else that accepts existing transfers so what options do i have with these two isas i have here. THANK YOU.