Likelihood of Better Rates Soon?

MisterMotivated

Hi all, I just want to ask people's opinions and see if anyone has any inside knowledge regarding possible better rate ISA's allowing transfers coming onto the market (optimistic, aren't I? :rotfl:).

My Halifax ISA matured today, dropping from 3% to 0.25%, and I'm planning to move the money to my Santander 123 account (already have FlexDirect and a First Direct 8% Regular Saver). I'm very happy with all my planning so far and I'm looking to make a large purchase next year so there's no need to use the "loss of tax free status" argument as I'll be withdrawing the money soon enough anyway.

My ISA has £5,800, but all the reasonable rate transfer-accepting ISAs seem to need a higher amount for the best rate. Before I withdraw the money, however, I'm wondering whether the Monday (or at least the week/fortnight) following the first week of the new tax year is likely to produce some better ISA's. If so, I might hang on and look to transfer.

The_Enforcer

Best instant access for an ISA transfer you can get currently is 2.3% Cheshire BS with postal access only; 2.15% Virgin online/branch/post. For a non-taxpayer or lower-rate taxpayer, the regular saver and current accounts you refer to all produce better net returns, which is why they form part of my plans too. I'd be surprised if any better ISAs emerge in the short-term, as the level of activity seems to be dropping off now.

MisterMotivated

Thanks, Enforcer. tbh I was thinking the same thing. Looks like I'll be going with Santander for now.

opinions4u

The only way is down from here.

Get 1.95% with access from Halifax for a few seconds of form filling:
https://www.halifax.co.uk/savings/accounts/cash-isas/ISAoptions/isaonline-application/application.asp

Easier than shunting over to Santander for 2.00%. If you're going to shunt, try Cheshire!

welshmoneylover

MisterMotivated wrote: »

Before I withdraw the money, .

Dont withdraw the money, let them transfer it otherwise you'll lose the isa status.

C_Mababejive

No...I dont expect better interest rates for savers or ISAs for the next couple of years.

Lokolo_2

welshmoneylover wrote: »

Dont withdraw the money, let them transfer it otherwise you'll lose the isa status.

If you read the OP you'd see that MisterMotivated would withdraw the money soon enough anyway for a big purchase next year so they are not bothered about losing ISA status!

DragonQ

If you don't mind losing ISA status, the best rates are with Nationwide's FlexDirect (as long as you can pay in £1000pm), Santander's 1-2-3 Account (same proviso) and Lloyds TSB's Vantage (same proviso).

Savings accounts are useless right now; I don't have any.

MisterMotivated

Thanks for all the replies folks. My (former) ISA money is now stuffed in my Santander 123 a/c getting 2.4% after tax, so I suppose it's about the best I can hope for at the moment (already have a FlexDirect with £2.5k).