Top Cash ISAs

xnoxxnox

I'm not sure if I should post this or not, but here it goes. Currently Abundance Investments are running a promotion on their IFISA - they will pay 1.5% interest on the cash balance held with them which is not invested until July. Note it is not a Cash ISA, but IFISA so might not be suitable if you already have an IFISA type subscription already. Or inverse might be a nice addition to your ISA subscriptions if you haven't tried any IFISAs yet. It is flexible, accepts transfers-in and transfers-out. One is meant to be tempted by their debentures products and invest into them, however they infrequently have new products launched hence they are tempting people by paying cash interest on the uninvested balance. In practice, one can use it as an Easy Access flexible and tax-free place to park cash until July. And 1.5% rate beats many of the 1 year fixes. Note, during normal times they don't pay interest at all, so if they withdraw this promotion, or stop it earlier, one will need to transfer somewhere else. I have IFISA with them, and have some cash with them and invested into some of their products as well. But otherwise I am not connected with them.

stingyscot

Further to this week's email tips for couples: the APS ISA system is not as straightforward as the MSE paragraph in 'Top Cash ISAs' "What happens to a cash ISA if the holder has passed away?" suggests. I have had to go through the process recently, and even the HMRC 'helpdesk' don't know what the rules are! I have tried to engage with MSE Towers on this subject but apparently it's of no interest. While I know it's a niche field, bereavement is when you are most in need of simple information to guide you through the tax maze.

eskbanker

stingyscot wrote: »

Further to this week's email tips for couples: the APS ISA system is not as straightforward as the MSE paragraph in 'Top Cash ISAs' "What happens to a cash ISA if the holder has passed away?" suggests. I have had to go through the process recently, and even the HMRC 'helpdesk' don't know what the rules are! I have tried to engage with MSE Towers on this subject but apparently it's of no interest. While I know it's a niche field, bereavement is when you are most in need of simple information to guide you through the tax maze.

In the context of a 'best buy' piece about top cash ISAs, it's probably unsurprising that an ancillary list of FAQs won't be stuffed full of explanatory detail about a complex and specialist area, especially when you see the nearly 5,000 words on the subject at https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa!

So, while the brief overview in the MSE piece is clearly not going to be anything resembling a comprehensive guide, what's the most significant omission as far as you're concerned, that would be consistent with the level of detail in there?

murphydavid

Bucking the trend email received "NS&I: We're reducing our Direct ISA interest rate from 24 September 2018"

Yorkshire_Pud

Instead of perpetually saying the cash isa is still worth having why doesn't mse/Martin say they are dead and useless.

"You would have to earn 25% more in a non isa savings account to better their rates" well you can most of the time, eg 2% fixed bond vs 1.6% ISA fix, only if you don't pay tax on the interest anyway you get more with the non isa.

Promoting these p poor ISA products is beyond the pail and if Martin and co started stating this maybe the banks would stop taking the p and up their rates.

Cash ISA is crap in 2019 and has been for years

And as for this rubbish about flexible ISAs and moving the funds in and out of EAS access funds t 'protect them from the taxman' that statement just shows how hard you have to work to glean any return on your money.

The banks get a subsidy don't they for running ISAs? Another win for the banks then supported by mse!

veryintrigued

Yorkshire_Pud wrote: »

Instead of perpetually saying the cash isa is still worth having why doesn't mse/Martin say they are dead and useless.

"You would have to earn 25% more in a non isa savings account to better their rates" well you can most of the time, eg 2% fixed bond vs 1.6% ISA fix, only if you don't pay tax on the interest anyway you get more with the non isa.

Promoting these p poor ISA products is beyond the pail and if Martin and co started stating this maybe the banks would stop taking the p and up their rates.

Cash ISA is crap in 2019 and has been for years

And as for this rubbish about flexible ISAs and moving the funds in and out of EAS access funds t 'protect them from the taxman' that statement just shows how hard you have to work to glean any return on your money.

The banks get a subsidy don't they for running ISAs? Another win for the banks then supported by mse!

Really?

Write them off fully at your peril.

Some of us have been using the RS type for years and will continue to do so.

This year's offering was again 2.25% for 1600 per month.

Fingers crossed they're just as crap this next year.....

Yorkshire_Pud

First time buyers ISA is a bit niche but obviously good for that minority like kids savings accounts rates.

For the rank and file majority I stand by my comment.

veryintrigued

Yorkshire_Pud wrote: »

First time buyers ISA is a bit niche but obviously good for that minority like kids savings accounts rates.

For the rank and file majority I stand by my comment.

No idea why you've brought first time buyers ISAs into this.

I'd do a little more digging if I were you.

Yorkshire_Pud

veryintrigued wrote: »

No idea why you've brought first time buyers ISAs into this.

I'd do a little more digging if I were you.

OK.......I will.

Alexland

Yorkshire_Pud wrote: »

Instead of perpetually saying the cash isa is still worth having why doesn't mse/Martin say they are dead and useless

Some of us have a particular problem as earning interest outside of an ISA wrapper contributes to our net adjusted income which risks child benefit clawback.

As both higher rate income tax and child benefit are set at the same £50k next tax year it looks like we will need to contribute some basic rate income into pensions to leave room for non-ISA interest. Never had to do that before as there was always a gap above higher rate tax and below child benefit clawback. Cash ISAs are starting to look a bit more attractive.

Alex