'Get 5% interest on your ISA money' blog discussion

Former_MSE_Helen

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "Get 5% interest on your ISA money" Blog.

Please click 'post reply' to discuss below.

dave2661lfc

Love the Martin Lewis shows and will always pop my head in to listen to him on This Morning if I'm around. But I have an ongoing question.

Why does he never seem to mention the Newcastle BS Big Home ISA. All last year and again now the new tax year has started, it pays 2.02% Easy Access and will give an additional bonus of 1% taking it to 3.02% (2.98%) for just paying in £1 each month. Contrary to what it says on Moneysupermarket.com, it is available online and there are no postcode restrictions. I accept it does not accept transfers but to me it appears to beat his easy access top pick and also his locked in deals. Is there something wrong with it he is not sharing with us.

VT82

I think the blog title is very misleading.

'Get 5% on your ISA money' suggests Martin will explain how to get 5% AFTER TAX on savings. The blog does nothing of the sort.

LXdaddy

dave2661lfc wrote: »

Why does he never seem to mention the Newcastle BS Big Home ISA. All last year and again now the new tax year has started, it pays 2.02% Easy Access and will give an additional bonus of 1% taking it to 3.02% (2.98%) for just paying in £1 each month. .

The Newcastle BS Big Home Saver ISA is on the MSE page on moneysavingexpert com savings best-cash-isa (you need to put the dots and slashes in as I can't post links!) - scroll down to
"Top ISA if you want to save each month"

It's the second one down

I do think the latest Nationwide account looks beter - with a higher monthly MAX, no requirement to depost each month and the commitment to raise the limit to the max once NISA starts in July

Consumerist

I've posted this elsewhere on the forum but be careful if using the fixed ISA "loophole" for this year's ISAs.

The loophole calculations are based on the assumption that your initial subscription is the only subscription for the tax year. The 2014/15 tax year is an exception to the norm in that you can only subscribe up to £5,940 until 1 July.

If, however, you top up to £15K in July, the penalty interest payment will immediately be based on the new balance if you later transfer-out. The loophole calculations will not apply.

If you want to take advantage of this fixed-rate loophole then it might be better to wait until July to open the ISA so that both the interest earned and the penalty paid are based on the same balance.

Just a thought.

Trying_to_be_good

I think Martin has his maths wrong on the net value of the monthly Halifax Reward for higher rate taxpayers - surely if it's £5 for basic rate payers after tax, that's £6.25 gross, and therefore £6.25 - 40% tax = £3.75 net for higher rate taxpayers, not £3.

It would only be £3 if the Gross interest were £5, not already net of basic rate tax.

Haider01

Interesting.
I find it hard to disagree with your logic, Martin.

But my gut instinct says that you are wrong.
Why do these companies offer 0% deals if not to get your interest after the deal has ended?