Top Cash ISAs

cinders59

refluxer said:

cinders59 said:

No last amount was paid in March. Thank you 

This tax year would mean the 6th April onwards. If you've not paid anything into one of your existing ISAs between 6th April and now, then you are free to open a new ISA and fund it with this years allowance.

Thank you. we would just leave the other ISA just lay there?

eskbanker

cinders59 said:

My husband and myself have instant Cash ISA with Coventry rubbish rate of 0.60% interest.
My question is He is having a lump sum from early retirement. is it possible to keep the current ISA open and keep them as old accounts and open up another one each and put the full amount into each account so as not to pay interest?

As above, it's possible to do this, but unlikely to be sensible!

Cash ISAs are generally poor value for money and even if you need to keep significant cash deposits, chances are that you'd get a better return on non-ISA savings accounts, even if you're using up your personal savings allowances.

However, if you choose to open new ISAs for this year's contributions, you can still transfer your old ISAs to these new accounts (if they accept inward transfers), or other new accounts, to secure better rates....

cinders59

eskbanker said:

cinders59 said:

My husband and myself have instant Cash ISA with Coventry rubbish rate of 0.60% interest.
My question is He is having a lump sum from early retirement. is it possible to keep the current ISA open and keep them as old accounts and open up another one each and put the full amount into each account so as not to pay interest?

As above, it's possible to do this, but unlikely to be sensible!

Cash ISAs are generally poor value for money and even if you need to keep significant cash deposits, chances are that you'd get a better return on non-ISA savings accounts, even if you're using up your personal savings allowances.

However, if you choose to open new ISAs for this year's contributions, you can still transfer your old ISAs to these new accounts (if they accept inward transfers), or other new accounts, to secure better rates....

Thank you 

soulsaver

@cinders59 '..to save you paying interest' Eh? 

Note - you don't make the transfer - you get the 'new' ISA provider to do it. Otherwise you'll lose your ISA status on the transfer. 

sparkyspark

Account name: 1 Year Fixed Rate Cash ISA Exclusive Issue 2 Fixed Rate of 1.50%

• You also need to have a current account with Virgin Money which was opened on or after 4 December 2019. Or, you originally opened your current account with Clydesdale Bank, Yorkshire Bank or B such as a Signature Current Account.
• 1 Year Fixed Rate Cash ISA Exclusive | ISAs | Savings | Virgin Money UK
  

Key Product Information Sheet Virgin Money 1 Yr Fixed Rate Cash ISA Exclusive KPIS

cslogg

I have very awkward situation with my better half (wife).For many many years we have had a Nationwide Fixed ISA.Up to now we have always reinvested with them in a 3 or 5 year term depending on what they offer.When we took our current 5y out the interest went from something like 3.5% Then it went to the current 1.64%My wife insisted we stay with Nationwide as she believes if it changes to being a bank we will get a windfall.She is now adamant that we stick with them even though I think the latest “best offer” is 1.40% for 2y. We have 32k with them and from my initial research I know we can get ar least 2% if we transfer to another provider.We have always taken the interest monthly to supplement our pensions.
With everything else going up  I just see it as somewhere were we can claw something back.
Any suggestions please?
 Have not yet got around to working out what the various rates would mean to us as I am not great at that side of it.

refluxer

cslogg said:

My wife insisted we stay with Nationwide as she believes if it changes to being a bank we will get a windfall.

Isn't it something like 20-odd years since that was a thing, though ? Instead of holding out for a potential (but unlikely) demutualisation windfall, I would consider the money you're losing out on every year by sticking with a building society who have long-since stopped paying market-leading rates, especially on their fixed rate products.

cslogg said:

She is now adamant that we stick with them even though I think the latest “best offer” is 1.40% for 2y. We have 32k with them and from my initial research I know we can get ar least 2% if we transfer to another provider.We have always taken the interest monthly to supplement our pensions.
With everything else going up  I just see it as somewhere were we can claw something back.
Any suggestions please?
 Have not yet got around to working out what the various rates would mean to us as I am not great at that side of it.

This is the calculation you need to do to work out roughly what you would expect to get...
2yrs @ 1.4% is £32,000 x 0.014 = £448 / yr

You need to compare that with the current best 1 and 2 year fixed rate ISAs...
1yr @ 1.5% is £32,000 x 0.015 = £480 / yr
2yrs @ 1.91% is £32,000 x 0.0191 = £611 / yr

Personally, with another Bank of England rate rise predicted this week, I don't think it's a good idea to fix for 2 years right now - particularly at the Nationwide's poor 2 year rate of 1.4%.

It's also worth noting that standard (non-ISA) fixed rate savings accounts are paying considerably more than their Cash ISA equivalents at the moment, so it would make sense to check your tax situation to ensure that Cash ISAs are still appropriate for your needs.

cslogg

Thanks for the calculations refluxer thats great help.
We are both pensioners so I assume our tax situation is fairly common.
We would prefer receiving the interest monthly as it supplements our inome.

cslogg

So if I move my money to a fixed bond would I qualify for the governments Personal Saving Allowance?
And that would give me more interest than a 2yr ISA paying 1.98 % for example?

masonic

cslogg said:

So if I move my money to a fixed bond would I qualify for the governments Personal Saving Allowance?
And that would give me more interest than a 2yr ISA paying 1.98 % for example?

It would depend on your other income, but assuming you are not a higher rate taxpayer then you'd qualify for a £1000 PSA to use against interest.