Cash ISAs: The Best Currently Available List

flobbalobbalob

clairec666 said

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.

Even if you do realise, I wouldn't trust them as my last transfer took 29 working days.

Kim_13

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.

You could argue that 14 days would be sufficient if they sent them by email, but Kent Reliance are another one and they refuse to do that saying it’s not secure. 

Skipton do send by email but their process is poor - if you use the maturity manager and the account you select is pulled prior to maturity, it’ll roll over onto the default re-fix unless you contact them to provide further instructions. The rate on date of application being honoured would be a fairly standard expectation in this scenario. It’s better to ignore their maturity manager, open the desired new account (as they give 30 days to fund it) and then submit an ISA transfer with the instruction to wait until maturity. This way you secure the option you want and remove the risk of being bounced into the re-fix when you think everything is in order.

Gambler

I keep reading about how you should only have emergency cash in an ISA and the remainder should be invested.

I now have quite a large cash holding but just wondering how the good people on this thread feel about cash versus investments?

gwapenut

I probably have too much in cash ISAs but I've invested heavily in pension contributions and feel I have enough investment exposure that way, therefore preferring to keep cash in an ISA. I suspect I'm not being wise, but it fits my risk profile

Nick_C

Gambler said:

I keep reading about how you should only have emergency cash in an ISA and the remainder should be invested.

I now have quite a large cash holding but just wondering how the good people on this thread feel about cash versus investments?

You should only invest money that you will not need to touch for at least five years.  And how much cash you need for an emergency is subjective.  But yes, at some point you should be investing, although many people are so risk averse that they never do.  But it's a discussion for another thread. 

Archerychick

Gambler said:

I keep reading about how you should only have emergency cash in an ISA and the remainder should be invested.

I now have quite a large cash holding but just wondering how the good people on this thread feel about cash versus investments?

Investing is for 5 years minimum, so any cash you won’t need outside of 5 years should be invested to maximise returns. Otherwise it should be in cash.

clairec666

Gambler said:

I keep reading about how you should only have emergency cash in an ISA and the remainder should be invested.

I now have quite a large cash holding but just wondering how the good people on this thread feel about cash versus investments?

What you "should" do is entirely down to personal choice and will vary depending on personal circumstances.

Generally speaking, money invested over 5+ years is going to get you better returns than money kept in a cash ISA for the same period.

subjecttocontract

We are all different and there isn't a one size fits all.
Age can be a factor. When in your 70's or 80's investing more is not always a particularly good idea.
But if you have a large income later in life, you have to put the money smewhere.

masonic

Gambler said:

I keep reading about how you should only have emergency cash in an ISA and the remainder should be invested.
I now have quite a large cash holding but just wondering how the good people on this thread feel about cash versus investments?

Suggest you start your own thread and provide some details about your objectives for this cash.

northernstar007

shawbrook bank 1 year fixed rate reduced to 4.01%