Cash ISAs: The Best Currently Available List

SickGroove

I've got around 60K in a fix with Coventry which matures late November. Their current fixed rate cash ISAs are poor. My question is...

If I just let it mature into their easy access cash ISA account. Can I then just open up a new cash ISA elsewhere WITHOUT putting any new money in (I've already used up my 25/26 allowance elsewhere) & just request to transfer the 60K from Coventry into the new account (it's all previous years money as it was a 3 year fix)

Obviously, the new provider will need to accept cash ISA transfers in. 

All thoughts welcome 

Cheers

refluxer

SickGroove said:

I've got around 60K in a fix with Coventry which matures late November. Their current fixed rate cash ISAs are poor. My question is...

If I just let it mature into their easy access cash ISA account. Can I then just open up a new cash ISA elsewhere WITHOUT putting any new money in (I've already used up my 25/26 allowance elsewhere) & just request to transfer the 60K from Coventry into the new account (it's all previous years money as it was a 3 year fix)

Obviously, the new provider will need to accept cash ISA transfers in. 

Yes, you can do that. Just double-check that transferring into an easy access ISA of some kind is an option with Coventry when your current fix matures - it may even be the default if you don't submit instructions.

If it defaults to a really low-paying 'maturity' ISA, then it might be worth actually choosing one of their higher-paying easy access ISA accounts, just in case the subsequent transfer takes a while (then it's not stuck on a derisory rate).

Edit - it looks like Coventry's fixed rate cash ISAs default to another fix of a similar duration so if you don't want that to happen (ie. you want your money transferred into an easy access account instead) then you must submit your maturity instructions and tell them what you want to do.

clairec666

SickGroove said:

I've got around 60K in a fix with Coventry which matures late November. Their current fixed rate cash ISAs are poor. My question is...

If I just let it mature into their easy access cash ISA account. Can I then just open up a new cash ISA elsewhere WITHOUT putting any new money in (I've already used up my 25/26 allowance elsewhere) & just request to transfer the 60K from Coventry into the new account (it's all previous years money as it was a 3 year fix)

Obviously, the new provider will need to accept cash ISA transfers in. 

All thoughts welcome 

Cheers

No problem with letting the money sit in Coventry's default maturity account while you decide where to put it... the downside is that it will be earning a poor rate of interest for a few days.

Most (all?) providers will let you transfer in without adding any new money, so that shouldn't be a problem.

gwapenut

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

It's a shame because they're a great society in other respects

refluxer

gwapenut said:

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

It's a shame because they're a great society in other respects

Actually, you're right - that does appear to be the default option. I'll amend my post above !

clairec666

gwapenut said:

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

It's a shame because they're a great society in other respects

There should be a 14-day cooling off period in which you can close the new fixed ISA without penalty, however there will be a lot of people who fail to realise in time.

CuparLad

gwapenut said:

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

Skipton are offering me the same option after an 18-month fix i.e. straight into another fix with a 14-day cooling off period at a pants rate. I have a transfer out scheduled on maturity, but it could easily be missed by those that don't take notice of the maturity conditions.

gwapenut

CuparLad said:

gwapenut said:

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

Skipton are offering me the same option after an 18-month fix i.e. straight into another fix with a 14-day cooling off period at a pants rate. I have a transfer out scheduled on maturity, but it could easily be missed by those that don't take notice of the maturity conditions.

I don't think this is good behaviour. Just because a 18 month fix suited someone 18 months ago, it does not logically follow that they don't need access to their money for another 18 months. Indeed, ignoring differences in rates, it could be argued that if they had wanted that, they may have taken a 3 year fix out originally. 

Given all the hoops that have to be jumped through to ensure insurance isn't mis-sold, that customer's requirements are being met and ensuring commitments are opt-in instead of opt-out, it seems odd to me that this practice hasn't been stamped down on.

I accept there are cooling off periods but many people will have gone through horrible phases in life where post and emails aren't attended to promptly because of other issues. You can diarise to keep on top of important known events, but did the original T&C's say that they would keep enrolling customers in fixes periodically until opted out?

clairec666

gwapenut said:

CuparLad said:

gwapenut said:

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

Skipton are offering me the same option after an 18-month fix i.e. straight into another fix with a 14-day cooling off period at a pants rate. I have a transfer out scheduled on maturity, but it could easily be missed by those that don't take notice of the maturity conditions.

I don't think this is good behaviour. Just because a 18 month fix suited someone 18 months ago, it does not logically follow that they don't need access to their money for another 18 months. Indeed, ignoring differences in rates, it could be argued that if they had wanted that, they may have taken a 3 year fix out originally. 

Given all the hoops that have to be jumped through to ensure insurance isn't mis-sold, that customer's requirements are being met and ensuring commitments are opt-in instead of opt-out, it seems odd to me that this practice hasn't been stamped down on.

I accept there are cooling off periods but many people will have gone through horrible phases in life where post and emails aren't attended to promptly because of other issues. You can diarise to keep on top of important known events, but did the original T&C's say that they would keep enrolling customers in fixes periodically until opted out?

Looking through a few currently available ISAs, both Skipton and Coventry state on the product information page that the default maturity option is a new fixed rate ISA. They could argue that it's made clear to the customer when they apply (which it kind of is, it's not buried deep in pages of T&Cs). Coventry say they'll write to you with maturity options 14 days prior, which probably was adequate a few years ago, but given the current state of the postal service might not give you enough time to react.
The onus is on the customer to read everything properly when applying, and to make a note of maturity dates, but Skipton and Coventry should also consider whether they should do things differently. The "standard option" for all other ISA providers I've looked at (to be fair I've only looked at another 3) is to mature into an easy access ISA. Skipton and Coventry seem to be in the minority, so should consider that their customers might not be expecting to be locked into a new fix.

fuzzzzy

clairec666 said:

gwapenut said:

CuparLad said:

gwapenut said:

Be careful that easy access IS the default option. Coventry a couple of years ago showed rare (for them) scumbaggery in this respect, because their default option used to be to mature into a new fixed rate, which is really not on.

Skipton are offering me the same option after an 18-month fix i.e. straight into another fix with a 14-day cooling off period at a pants rate. I have a transfer out scheduled on maturity, but it could easily be missed by those that don't take notice of the maturity conditions.

I don't think this is good behaviour. Just because a 18 month fix suited someone 18 months ago, it does not logically follow that they don't need access to their money for another 18 months. Indeed, ignoring differences in rates, it could be argued that if they had wanted that, they may have taken a 3 year fix out originally. 

Given all the hoops that have to be jumped through to ensure insurance isn't mis-sold, that customer's requirements are being met and ensuring commitments are opt-in instead of opt-out, it seems odd to me that this practice hasn't been stamped down on.

I accept there are cooling off periods but many people will have gone through horrible phases in life where post and emails aren't attended to promptly because of other issues. You can diarise to keep on top of important known events, but did the original T&C's say that they would keep enrolling customers in fixes periodically until opted out?

Looking through a few currently available ISAs, both Skipton and Coventry state on the product information page that the default maturity option is a new fixed rate ISA. They could argue that it's made clear to the customer when they apply (which it kind of is, it's not buried deep in pages of T&Cs). Coventry say they'll write to you with maturity options 14 days prior, which probably was adequate a few years ago, but given the current state of the postal service might not give you enough time to react.
The onus is on the customer to read everything properly when applying, and to make a note of maturity dates, but Skipton and Coventry should also consider whether they should do things differently. The "standard option" for all other ISA providers I've looked at (to be fair I've only looked at another 3) is to mature into an easy access ISA. Skipton and Coventry seem to be in the minority, so should consider that their customers might not be expecting to be locked into a new fix.

I think I will just avoid ever taking out a fixed rate ISA with any provider who automatically defaults to another fix at maturity. I think it is just too much of a risk of getting locked in at a crap rate if you happen to take your eye off the ball for whatever reason.