MSE News: Does loyalty pay when it comes to cash ISAs? 30 March 2015 at 11:30AM in ISAs & tax-free savings 20 replies 3.5K views

Former_MSE_Helen

Many providers have upped cash ISA rates for savers who also have a current account with them. But does loyalty pay?...

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Does loyalty pay when it comes to cash ISAs?




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jimjames

Not really when the current account pays better than the ISA it's linked to!

Oblivion

Quite honestly, chasing the odd 0.1% extra interest here and there has become a total bore. I'll be sticking our 2015/16 allocation into our NS&I Cash ISAs as usual. I yearn for a return to the days of 8% interest accounts ... but maybe just a dream in what is left of my lifetime.

Pincher

With the new budget, it will be 3% TAX FREE in a Santander 123.


1.6% ISA? What a joke.

Archi_Bald

Pincher wrote: »

With the new budget, it will be 3% TAX FREE in a Santander 123.


1.6% ISA? What a joke.

If you are referring to the £1,000 tax free interest per annum: this is not planned to start until April 6 2016, and is subject to any emergency budget we may suffer in May.

Pincher

Archi_Bald wrote: »

If you are referring to the £1,000 tax free interest per annum: this is not planned to start until April 6 2016, and is subject to any emergency budget we may suffer in May.

2016! Counting my pennies one year early.


3% taxable is still better than 1.6% tax free, though.


I do have a HSBC Premier ISA, and guess what, I had to use the money from the Santander for a big bill, because you can't put it back with an ISA. I know, the rules are changing, but not yet.

escapee

Archi_Bald wrote: »

If you are referring to the £1,000 tax free interest per annum: this is not planned to start until April 6 2016.

Unless your current annual income (including interest on savings) falls below £15,500 - if so you can already claim a tax free allowance on savings!

poppy10_2

I have a question about the HSBC ISA. To open it you need to have a HSBC Premier current account, which requires you to have £50k held with HSBC.

I have £40k worth of ISAs with other providers and can top this up to over £50k after April. I want to then transfer this to a HSBC ISA, which should qualify me for a Premier Account, but how can I open the ISA without having the Premier Account first? Or how can I open the Premier Account before transferring my ISA first? It all seems very circular

Pincher

poppy10 wrote: »

Or how can I open the Premier Account before transferring my ISA first? It all seems very circular

Don't worry about it. They know it takes time transferring assets.


If you don't keep £50k worth of assets with HSBC for an extended period of time, they will tell you to do something to make it up. If you don't, they will downgrade the account into a regular current account.

standbythelads

Surprised United Trust Bank in London has not been mentioned. 5 year fixed cash isa bond pays 2.75% on amounts £5k or above but only accepts transfers in. £85k cover via FSCS and interest paid annually to nominate bank. Best one I found for people with maturing isas.

redmalc

Pincher, I disagree with your comments about HSBC downgrading your account,I am a Premier Customer and only when we joined which was 8 years ago did we fulfill the criteria.
I have no accounts with them other than the current account and they have kept our Premier Status,i offered to move my account away when we transferred 150K from them 5 years ago to a different Bank.
I actually went in a few months ago to enquire about my status and was told its all ok,one day you will return,i responded when you pay better rates,i will.