A good online ISA

misters_2

Hi i was just wondering if someone could recommend a good online ISA, in which money can be moved easily from my current account to the isa and vice versa.
Thanx in advance.

Kazza242

It might be worth considering opening an ISA with the bank that holds your current account, as deposits and withdrawals are usually instant. You haven't specified which bank that is, so I can't advise on whether the isa (if they have one) can be managed online.

Of course your bank may not offer competitive rates on their ISA. So, it may be worth looking at:

Yorkshire Building Society's E-ISA paying 5.20% interest. Here's a link to it.

Derbyshire Building Society's Limited Edition Tracker mini cash ISA paying 5.20%. The rate of interest will be at least 0.25% above Bank Rate until 5 April 2006. Here's a link to it.

Halifax's ISA Direct paying 5.15% interest. Here's a link to it.

Of course, there is also the First Direct e-ISA, which pays 6.25% until October 6 2005. The rate then falls to 4.35%. Info from the First Direct page here and here's a link to the First Direct mini cash ISA thread I started back in February.

grumbler

misters wrote:

...money can be moved easily from my current account to the isa and vice versa...

http://www.smile.co.uk/

Are you sure that you have clear understanding how cash ISAs work? Do you undestand that if you pay £3000 during financial year into ISA and then take some money out you cannot pay this money back into ISA?

'ISAs - save tax' article.

new2it

Hi all
I'm currently following Martins advice with £3000 invested in Alliance and Leics, transferring £250 a month into Halifax Regular savers. I also have £3000 in an Abbey Postal ISA (Last years allocation)
My question is this. Would I receive more interest by continuing as I am, or would it be better to simply invest the entire £3000 (currently going through the savings route) in this year's ISA straight away? Would interest be payable on £6000 then, or just the new £3000?
Thanks

grumbler

new2it wrote:

Would I receive more interest by continuing as I am, or would it be better to simply invest the entire £3000 (currently going through the savings route) in this year's ISA straight away? Would interest be payable on £6000 then, or just the new £3000?

You can invest £3000 into ISA and earn interest on full £6000+.
However, for £3000 lump sum I calculated the effective AER of A&L(5.35%)+Halifax(7%) combination as 6.87% before tax and 5.50% after 20% tax. You can be a little (just a few pounds) better off with some exotic ISAs (05/06 tax year - cash ISA - 5.50%+) but I prefer to use my ISA allowance at the end of a financial year. In this case I do not risk losing my allowance in case of emergency.

margaretclare

Hi

Yes, I agree with Kazza - Yorkshire BS E-ISA is a good one.

Aunty Margaret

hansi

margaretclare wrote:

Hi

Yes, I agree with Kazza - Yorkshire BS E-ISA is a good one.

Aunty Margaret

unless you want to transfer out a some later stage!

Kazza242

hansi wrote:

unless you want to transfer out a some later stage!

As far as I'm aware, there are no penalties for transferring out of the Yorkshire BS E-Isa. This was a CAT-standard account, before the CAT mark was abolished. I think you may have got this isa mixed up with the 5.25% 30-day notice isa also offered by Yorkshire BS.