Cash ISAs: The Best Currently Available List

friolento

Kim_13 said:

clairec666 said:

Email from Tembo yesterday telling me that the interest rate on my LISA will be dropping from 4.6% to 4.33% from 19th June. I imagine their easy access ISA (currently 4.8%) will drop by a similar amount. Neither rate reduction is mentioned on their website yet 

No one likes rate reductions but those of this type irritate me - it’s been more than a month since the cut so any cuts in response to it should have been made already, and logically it should be a hold this coming Thursday. If I recall correctly Nationwide have made two cuts to some of their products since the 8th May decision.

Why are you irritated if the rate cut on your savings account doesn’t happen sooner? 🤷🏻‍♂️

Kim_13

friolento said:

Kim_13 said:

clairec666 said:

Email from Tembo yesterday telling me that the interest rate on my LISA will be dropping from 4.6% to 4.33% from 19th June. I imagine their easy access ISA (currently 4.8%) will drop by a similar amount. Neither rate reduction is mentioned on their website yet 

No one likes rate reductions but those of this type irritate me - it’s been more than a month since the cut so any cuts in response to it should have been made already, and logically it should be a hold this coming Thursday. If I recall correctly Nationwide have made two cuts to some of their products since the 8th May decision.

Why are you irritated if the rate cut on your savings account doesn’t happen sooner? 🤷🏻‍♂️

I view proportional rate cuts in response to a base rate fall as justified, and that if a provider chooses not to respond soon afterwards, they indicate that they can absorb it. A later cut doesn't feel the same, in that it indicates they were deliberately trying to get themselves a higher position in the tables with no intention of holding the rate - as the later cut is in response to nothing.

Regarding Skipton monthly interest options, I can't recall seeing one on an ISA or Bonus Saver. A non-ISA Base Rate Tracker hasn't been released in a while, if a monthly option is missing from the next of those then that might indicate that they are indeed phasing them out. 

Nick_C

Growingold said:

Kim_13 said:

Skipton have launched a 12 Month Base Rate Tracker ISA, with a 0.15% deduction from the BOE rate. 

As this beats the 0.25% deduction they had earlier in the year, I tried to open one but it didn’t work - seemed to be saying it wasn’t available so perhaps the application process hasn’t been fully set up yet. I can’t see an exclusion of holders of previous issues (intending to transfer), so will try again in the morning.

On their website this morning, worked. Transferred my previous Tracker ISA you mentioned into it.  But if you have withdrawn this tax year from that one if you transfer without replacing the withdrawn funds first you will lose that part of your allowance. But can open and fund at a later date

Do you have a link to a source for this please?

I've been trying to do an AI search, and I get different answers depending on how I phrase the question!  I've tried looking at the sites the AI is using, but can't see a definitive answer.

masonic

Nick_C said:

Growingold said:

Kim_13 said:

Skipton have launched a 12 Month Base Rate Tracker ISA, with a 0.15% deduction from the BOE rate. 

As this beats the 0.25% deduction they had earlier in the year, I tried to open one but it didn’t work - seemed to be saying it wasn’t available so perhaps the application process hasn’t been fully set up yet. I can’t see an exclusion of holders of previous issues (intending to transfer), so will try again in the morning.

On their website this morning, worked. Transferred my previous Tracker ISA you mentioned into it.  But if you have withdrawn this tax year from that one if you transfer without replacing the withdrawn funds first you will lose that part of your allowance. But can open and fund at a later date

Do you have a link to a source for this please?

I've been trying to do an AI search, and I get different answers depending on how I phrase the question!  I've tried looking at the sites the AI is using, but can't see a definitive answer.

Don't use AI to make predictions about such things based on a language model, use authoritative factual sources.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas

"Replacement of flexible ISA funds from the previous year, current year or both must be made:

• to the account from which the withdrawal was made
• in the same tax year

"

You cannot fulfil the first point after transferring out, you must make any replacement subscriptions you wish to before transferring out.

Or, https://www.moneysavingexpert.com/savings/flexible-isas/

"You must replace the money in the same ISA
The key rule is you must replace the money in the same ISA account you took it out from, otherwise the deposit will count towards your £20,000 annual limit."

friolento

Kim_13 said:

friolento said:

Kim_13 said:

clairec666 said:

Email from Tembo yesterday telling me that the interest rate on my LISA will be dropping from 4.6% to 4.33% from 19th June. I imagine their easy access ISA (currently 4.8%) will drop by a similar amount. Neither rate reduction is mentioned on their website yet 

No one likes rate reductions but those of this type irritate me - it’s been more than a month since the cut so any cuts in response to it should have been made already, and logically it should be a hold this coming Thursday. If I recall correctly Nationwide have made two cuts to some of their products since the 8th May decision.

Why are you irritated if the rate cut on your savings account doesn’t happen sooner? 🤷🏻‍♂️

I view proportional rate cuts in response to a base rate fall as justified, and that if a provider chooses not to respond soon afterwards, they indicate that they can absorb it. A later cut doesn't feel the same, in that it indicates they were deliberately trying to get themselves a higher position in the tables with no intention of holding the rate - as the later cut is in response to nothing.

The later cut is in response to the BR cut. There are no rules for how quickly providers have to respond. In a falling rate climate, I am more than happy myself with the slow responders, and I suppose most other savers are too. Though clearly if a provider isn't fast enough for your liking, quickly move your money to where it can earn less 

Kim_13

Nick_C said:

Growingold said:

Kim_13 said:

Skipton have launched a 12 Month Base Rate Tracker ISA, with a 0.15% deduction from the BOE rate. 

As this beats the 0.25% deduction they had earlier in the year, I tried to open one but it didn’t work - seemed to be saying it wasn’t available so perhaps the application process hasn’t been fully set up yet. I can’t see an exclusion of holders of previous issues (intending to transfer), so will try again in the morning.

On their website this morning, worked. Transferred my previous Tracker ISA you mentioned into it.  But if you have withdrawn this tax year from that one if you transfer without replacing the withdrawn funds first you will lose that part of your allowance. But can open and fund at a later date

Do you have a link to a source for this please?

I've been trying to do an AI search, and I get different answers depending on how I phrase the question!  I've tried looking at the sites the AI is using, but can't see a definitive answer.

It would be HMRC’s new Flexible ISA allowance rules, wouldn’t it? If you transfer to another ISA, even another Skipton ISA then you cannot replace the subscriptions in the same ISA as they were withdrawn from. 

If someone has a flexible allowance that they probably won’t use, then they could test it. If the ISA internally transfers and still shows more than the current year allowance as available, then it’s presumably fine as Skipton should report the same to HMRC.

slinger2

masonic said:

Nick_C said:

Growingold said:

Kim_13 said:

Skipton have launched a 12 Month Base Rate Tracker ISA, with a 0.15% deduction from the BOE rate. 

As this beats the 0.25% deduction they had earlier in the year, I tried to open one but it didn’t work - seemed to be saying it wasn’t available so perhaps the application process hasn’t been fully set up yet. I can’t see an exclusion of holders of previous issues (intending to transfer), so will try again in the morning.

On their website this morning, worked. Transferred my previous Tracker ISA you mentioned into it.  But if you have withdrawn this tax year from that one if you transfer without replacing the withdrawn funds first you will lose that part of your allowance. But can open and fund at a later date

Do you have a link to a source for this please?

I've been trying to do an AI search, and I get different answers depending on how I phrase the question!  I've tried looking at the sites the AI is using, but can't see a definitive answer.

Don't use AI to make predictions about such things based on a language model, use authoritative factual sources.

https://www.gov.uk/guidance/manage-isa-subscriptions-for-your-investors#flexible-isas

"Replacement of flexible ISA funds from the previous year, current year or both must be made:

• to the account from which the withdrawal was made
• in the same tax year

"

You cannot fulfil the first point after transferring out, you must make any replacement subscriptions you wish to before transferring out.

Or, https://www.moneysavingexpert.com/savings/flexible-isas/

"You must replace the money in the same ISA
The key rule is you must replace the money in the same ISA account you took it out from, otherwise the deposit will count towards your £20,000 annual limit."

or see the actual regulations: https://www.legislation.gov.uk/uksi/1998/1870/regulation/5DDB

"Any replacement subscription may be made only to the account from which the withdrawal of a cash amount it is replacing was made."

"On any transfer under regulation 21 the right of the account investor under paragraph (1) in relation to an account transferred is to cease in respect of a withdrawal of a cash amount from the account made before the transfer."

The latter effectively says that the right to replace "ceases" after you've done a transfer. i.e. that right is not transferred.

s71hj

Kim_13 said:

friolento said:

Kim_13 said:

clairec666 said:

Email from Tembo yesterday telling me that the interest rate on my LISA will be dropping from 4.6% to 4.33% from 19th June. I imagine their easy access ISA (currently 4.8%) will drop by a similar amount. Neither rate reduction is mentioned on their website yet 

No one likes rate reductions but those of this type irritate me - it’s been more than a month since the cut so any cuts in response to it should have been made already, and logically it should be a hold this coming Thursday. If I recall correctly Nationwide have made two cuts to some of their products since the 8th May decision.

Why are you irritated if the rate cut on your savings account doesn’t happen sooner? 🤷🏻‍♂️

I view proportional rate cuts in response to a base rate fall as justified, and that if a provider chooses not to respond soon afterwards, they indicate that they can absorb it. A later cut doesn't feel the same, in that it indicates they were deliberately trying to get themselves a higher position in the tables with no intention of holding the rate - as the later cut is in response to nothing.

Regarding Skipton monthly interest options, I can't recall seeing one on an ISA or Bonus Saver. A non-ISA Base Rate Tracker hasn't been released in a while, if a monthly option is missing from the next of those then that might indicate that they are indeed phasing them out. 

This is especially irritating in the case of cash ISAs where the transfer process can be long and convoluted to the degree of deterrence unlike a straightforward faster payments move of funds between providers as rates shift about 

Nick_C

Many thanks for all the advice on transferring a flexible cash ISA but staying with the same provider.  I was totally unaware of the limitation on doing this. 

I've withdrawn about £7k from my Skipton Tracker ISA this year, so I need to replace this before I open the new Skipton Tracker and do the transfer.

The extra 0.1% interest isn't significant, but the fact that it is for another 12 months is.

I've got about £10k in the flexible Skipton Tracker (BOEBR - 0.25%) ISA currently, and over £20k in a Principality flexible ISA which I have not funded this year. 

So my plan is to withdraw £7k from Principality, top up Skipton, transfer Skipton to Skipton, then withdraw the £7k from the new Skipton account and pay it back into Principality. 

Does that comply with the rules? 

masonic

Nick_C said:

So my plan is to withdraw £7k from Principality, top up Skipton, transfer Skipton to Skipton, then withdraw the £7k from the new Skipton account and pay it back into Principality. 
Does that comply with the rules? 

Yes that would be allowed.