Is this First Direct ISA any good?

Snakey

I was wondering where this information was coming from until my post arrived this afternoon.

This may be the nudge I was needing to get me to do the necessary research into Stocks and Shares ISAs. It was only ever held in cash because there was a chance I'd need it for my flat purchase. 1.5% is just too low, you'd get a better post-higher-rate tax return from one of those high-interest current accounts, although of course you might regret losing the tax-free wrapper in future years.

At least I have three months in which to dither and procrastinate.

jimjames

tipsychick wrote: »

I imagine with the new increase in NISA deposits of up to £15K, plus people transferring in quite possibly large amounts from S&S ISAs for the first time, FD really don't want to be paying out such "high" rates of interest.

I think it very unlikely that anyone prepared for the risk of a S&S ISA would transfer to cash when rates are so low and they can get income of 4% plus in shares.

I_have_spoken

Lots of reasons why peeps would have been looking to lock-in S&S ISA gains with a transfer to cash and (almost) maintain buying power against inflation.

colsten

Snakey wrote: »

I was wondering where this information was coming from until my post arrived this afternoon.

This may be the nudge I was needing to get me to do the necessary research into Stocks and Shares ISAs. It was only ever held in cash because there was a chance I'd need it for my flat purchase. 1.5% is just too low, you'd get a better post-higher-rate tax return from one of those high-interest current accounts, although of course you might regret losing the tax-free wrapper in future years.

At least I have three months in which to dither and procrastinate.

If you need your money for a deposit in the near future, it might not be a bright idea to put it into any investment, S&S ISA or not.

Snakey

Gave you half a story there. I finally bought a flat three months ago and did not need the ISA money.

Since then, I've been using "but they're changing all the rules in July, so I'd better wait and see whether any new deals come up!" as an excuse not to get myself sorted out. Now it's July and I need to either find a better excuse or actually do something.

(During my purchase I was saying to people "you'll know when I've completed because it'll be the day the housing market crashes". So... if the FTSE tanks one day soon, you'll know it's because I finally got around to sinking everything into a stocks and shares ISA.)

colsten

Ta for clarifying things, sounds like you might really do better in an S&S ISA if your emergency cash fund (in the good current accounts) is well stocked.

Other than that, keep buying - as your flat purchase seems to have helped raise prices yet again, lol.

Snakey

I suspect I overpaid sufficiently to have caused a miniature bubble all of my own.

I could pay off bits of mortgage, which would save me 2.99%, but if I do that all my eggs are in the property basket. And unless I pick totally duff investments, I'd hope to beat that in the stock market.

In an attempt to pretend I didn't just drag a thread off topic to talk about myself, I did have a quick look around yesterday for better cash ISA rates (for transfers-in and large balances) and it seems that First Direct are still at or near the top even with the lower rate. I swear I don't work for them.

xylophone

At least I have three months in which to dither and procrastinate.

Perhaps some other provider will have come up with a better offer by October.......

( I know, I know, "Hope springs eternal.....") :rotfl:

Mr_K

ScoobyZ wrote: »

New Lower Rates from 16th October!:

£1 - £14,999 - 1.3%
£15,000 - £29,999 1.4%
£30,000+ £1.5%

I will be moving mine

Where to ? Is there a better paying cash ISA with instant access ?

deutsch

Might as well just put some of it into Santander's current account. I'd probably be better off.

Disappointed at this though, just only moved to FD.