Santander Cash ISA 2014

beardiedog

Upgraded mine this morning to the 2.3% 123 fixed 2 years.

I'll probably put 2014/15's in an instant access ISA with another bank, though, as Santander's 1% is pretty poor.

Or keep it in my 123 account until the end of the next tax year.

savetilibleed

20vt-rs wrote: »

Santander's new ISA's are on their web site now, the 2.3% for 123 customers is a 2-year fix. 2.0% 2 year fix for non Santander customers...


http://www.santander.co.uk/csgs/Satellite?c=Page&canal=CABBEYCOM&cid=1237908323140&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateT2

I have a decent wedge in the Cheshire BS ISA Saver 1, where the 2.5% rate goes down to 0.5% on 31 July 2014. Although I have a smaller amount in Santander Direct ISA Saver 1 (bonus to go 25 March 2014), I am thinking maybe the larger amount in Cheshire could be transferred to this new Santander 123 Fixed ISA and forgo the interest loss between the two for a few months. Then find an easy access home (or even non ISA home) for the account about expire.

Archi_Bald

beardiedog wrote: »

Or keep it in my 123 account until the end of the next tax year.

That seems a very sensible approach to me - not much point throwing new money into ISA accounts that pay less than current accounts. But you need to keep an eye on the interest rate of the current account, it's variable.

home_alone

They were on the ball this morning my and my wifes fixed isas end 1May and had a call from local Santander wanting a meeting to discuss what I intend to do with them also pushing their 2year fixed 2.3 if I take their 123 current account, not sure if its worth all the effort for .3% only to go through it all again in 2 years. Still watching to see what happens before I have to do something.

Wyndham

Was out shopping so popped into a branch today.

If you open one of the new accounts at 2.3%, you then have 14 days to add in any 'other' money i.e. transfers. I explained that I'm waiting for my 4% ISA to mature on 1st May, and she said I could upgrade that account then. I asked if the rate would still be available then, but while she couldn't guarantee it, she said the account was designed to keep those of us who had money in a Major ISA with them - but that could be baloney, of course.

She then suggested that I open an ISA today, another in the next tax year, and upgrade my current one on 1st May so I had three accounts with them....

macman

frizziekizzie wrote: »

I'm pretty disappointed with the interest rate for the Direct ISA Saver. I currently have 2.5% interest with that account (which I've held with Santander for many years). As appealing as the 123 ISA is, I can't lock my money away for 2 years as I never know when I might need it. Hopefully someone else will come up with a higher rate...

It's not 'locked away'. But you will lose 120 days interest if you withdraw inside the 2 years. If the money is needed in an emergency, that may be a price worth paying-only you can decide.
I can't see anyone paying a better rate on a 'no penalty instant access account' at present.
Just wish I hadn't taken out the 2 year fix Santander ISA a year ago at 1.8%...

smoulder

Apparently Santander will increase their instant access rate from 1% to 1.6% shortly:
thisismoney. co. uk /money/saving/article-2580312/Santander-boosts-easy-access-cash-Isa-rate-1-6.html

AlwaysLearnin

Link:

http://www.thisismoney.co.uk/money/saving/article-2580312/Santander-boosts-easy-access-cash-Isa-rate-1-6.html

matttye

bobbydubs wrote: »

Am I missing the point here? I have a Santander123 current account which pays 3.00% (2.4% after tax) on balances over £3000, so why would I want to settle for anything less? I'm not a higher rate tax earner. Or is the 3.00% likely to be withdrawn?

If you're saving for the long term it makes perfect sense to save in an ISA, as the money will be tax free for life - including when interest rates rise again.

If you're saving for the short term then ISAs aren't always a great idea.

Eg I'm saving for a mortgage deposit. The interest rate is more important than the tax free status for me because I'll be using the money soon anyway.

If I were saving for a number of years then I'd be more inclined to use ISAs.

laudo

See the 2.3% fixed 2years isa, can you still pay into it monthly or as and when you like over these 2 years? (Obvs upto your allowance)