Nottingham Cash Isa 4%. Branch only.

sooty4

The Nottingham have a cash Isa just for this years allowance. Paying 4%. It is branch based so ideal if you live in the area covered by their branches and can leave it in as access is 180 days loss of interest. No good for me as too far but found it as I was looking around for a good rate and thought I would share.

Happychappy

I think you will find this is a saver Isa which only allows £480 per month rather than an ISA which allows a full one off payment of £5760 and a full years interest, don't know what the interest will work out on this regular saver isa ?

Gromitt

Happychappy wrote: »

don't know what the interest will work out on this regular saver isa ?

If you deposited the full £480 per month (£5760) , you would get £124 interest.

If you have the £5760 to deposit in one lump sum, it would therefore give you an equivalent interest rate of 2.15%.

Therefore, more appropriate to people who only deposit up to £480 into their ISA per month.

veryintrigued

Gromitt wrote: »

If you deposited the full £480 per month (£5760) , you would get £124 interest.

If you have the £5760 to deposit in one lump sum, it would therefore give you an equivalent interest rate of 2.15%.

Therefore, more appropriate to people who only deposit up to £480 into their ISA per month.

Not at all.

For people who already have the £5760 saved up in a decent paying instant account and will drip feed it into this account -hence receiving the equivalent over 0.5% above the best year long ISA on the market.

Gromitt

veryintrigued wrote: »

For people who already have the £5760 saved up in a decent paying instant account and will drip feed it into this account -hence receiving the equivalent over 0.5% above the best year long ISA on the market.

Sorry, bad choice of words, but it amounts to the same thing. I think decent paying instant access accounts are dying pretty quickly however. All that seems to be left are current accounts.

Lets assume you used a Santander 123 as your drip feeding account so had £5760 in it. That would normally be £172 gross.

Now you would get £124 in the ISA and £80 in the current account (£64 net), so a total of £204 or 3.54%. Taking tax into considering it would be £188 or 3.26%.

However if your decent paying accounts are full (mine always are), so your savings is more likely to be 2%, then you'll get closer to 2.88%, so more worthwhile to open a 3% Santander ISA and throw the lot in.

Chances are for most people that your savings will increase by about £500-£1500/month on average anyway and your existing instant access will drop soon, so its all a moot point.

marathonic

I was tempted to chance this ISA but, being from Northern Ireland, a postal application may have been seen as chancing my arm. I went for Principality instead at 3%. The next step is to open a First Direct account to take advantage of their regular saver at 4.8% net.

juniorthrifty

Hi, thanks for posting this. I have the nottingham starter ISA issue 2 account (5% interest)which was a great first ISA. Although the rate has now dropped in the new tax year to 1% I think.

Do you think it would be better to upon up the issue 3 (4%) and fill it up and keep my other ISA in the 1% account. Or transfer my old ISA and fill up my allowance for this year in a 2.1% account?

marathonic

juniorthrifty wrote: »

Hi, thanks for posting this. I have the nottingham starter ISA issue 2 account (5% interest)which was a great first ISA. Although the rate has now dropped in the new tax year to 1% I think.

Do you think it would be better to upon up the issue 3 (4%) and fill it up and keep my other ISA in the 1% account. Or transfer my old ISA and fill up my allowance for this year in a 2.1% account?

You can open up ones of these for new money - provided you didn't pay anything into your old ISA since 5th April.

You can then open a Best Buy ISA with another company and transfer your existing contributions over to that for the year. You should be able to get 2.3% for this one - see Cheshire.

If you have the funds available for the entire allowance, make sure to open a deposit account with a good rate until you are able to lodge it to the new ISA.

veryintrigued

Gromitt wrote: »

Sorry, bad choice of words, but it amounts to the same thing. I think decent paying instant access accounts are dying pretty quickly however. All that seems to be left are current accounts.

Lets assume you used a Santander 123 as your drip feeding account so had £5760 in it. That would normally be £172 gross.

Now you would get £124 in the ISA and £80 in the current account (£64 net), so a total of £204 or 3.54%. Taking tax into considering it would be £188 or 3.26%.

However if your decent paying accounts are full (mine always are), so your savings is more likely to be 2%, then you'll get closer to 2.88%, so more worthwhile to open a 3% Santander ISA and throw the lot in.

Chances are for most people that your savings will increase by about £500-£1500/month on average anyway and your existing instant access will drop soon, so its all a moot point.

I think we're agreed then that for some drip feeding will be a better option - even if they have the £5760 funds available. Especially if they only want to tie their money up for a year (think the Santander you mention is a 2 yr - although in a yerars time that may be an advantage!!).

You need not limit yourself to current and instant though for the drip feeding. Something like the Ulster Regular Saver pays 2.5% and withdrawals can be made with no issue.

That 2.5% inconjunction with the 4% Nottingham is far, far higher than any equivalent 1 yr ISA on the market I think.

veryintrigued

OH opened one today as well as a 3.1% regular saver (shes maxed all other regular savers).

I still maintain that its a great little society. Hopefully they'll keep rates competitive.