RBS - Instant Access ISA 2017/18

NoodleDoodleMan

Has anybody else been looking at the Royal Bank of Scotland's Instant Access ISA for this new tax year, based on its high ranking in MSE's Top Cash ISAs 2017/18 "best buy" advice ?

The information is misleading in my opinion - it appeared (to me at least) that the 1.05% interest rate would apply to £20,000 and any amount above that sum.

In fact the 1.05% only applies up to that 20 grand level - anything more gets 0.05%.

Not such a good deal if you have more that the £20K.

YouStoozeYouLose

The terms in the summary box seem clear enough.

"You'll receive a 1.00% (fixed) tax-free p.a. bonus interest rate for 12 months from 18 May 2017 to 17 May 2018 on the first £20,000 in your account."

B_G_B

Maybe having a brain fart moment. Could someone check my understanding please.

I’ve just taken a look at this account and I reckon that the optimum rate can be achieved with £25,000. My maths says a return of ~ £302, that is ~ 1.2%.
(assuming that the variable part of the interest doesn't change)

isasmurf

YouStoozeYouLose wrote: »

The terms in the summary box seem clear enough.

"You'll receive a 1.00% (fixed) tax-free p.a. bonus interest rate for 12 months from 18 May 2017 to 17 May 2018 on the first £20,000 in your account."

I might be wrong, but I think the OP meant the information on the MSE "Top cash ISA" page. Nowhere on there does it indicate that the bonus is only applicable to the first £20,000 only. It merely states that the interest rate is 1.05% including the bonus if you deposit at least £20,000.

grumbler

B_G_B wrote: »

Could someone check my understanding please.

I’ve just taken a look at this account and I reckon that the optimum rate can be achieved with £25,000. My maths says a return of ~ £302, that is ~ 1.2%.
(assuming that the variable part of the interest doesn't change)

How have you come to this result?
The optimum rate can be achieved with £20K exactly.

B_G_B

grumbler wrote: »

How have you come to this result?
The optimum rate can be achieved with £20K exactly.

On £25,000 you earn 0.5% (variable) = £125. plus bonus on !st £20,000 = £177. Total = £302. This is because the variable part is higher on £25000 than on £20,000, 0.5% compared with 0.05%.

PeacefulWaters

Again, RBS manage to make the simple concept of savings interest infuriatingly complex.

http://personal.rbs.co.uk/personal/savings/isa-overview.html

For example, you complete an ISA transfer into your account for £50,000 on 10 April 2017. From 18 May 2017 to 17 May 2018 you’ll earn 1.50% on the first £20,000, and 0.50% on the remaining £30,000. Between making a deposit and the 17 May 2017 you'll earn the standard interest rate of 0.50%.

So yes, £25k is the optimum balance, averaging 1.30%.

£20k earns 1.50% = £300.
£5k earns 0.50% = £25.

grumbler

PeacefulWaters wrote: »

Again, RBS manage to make the simple concept of savings interest infuriatingly complex.

http://personal.rbs.co.uk/personal/savings/isa-overview.html

Wow

I must confess that I thought reading "Instant Access ISA at a glance" would suffice - and they don't even mention £25K here.

And after reading several times I still am not sure whether £20K can be transferred or has to be "new savings":

RBS wrote:

1.00% Bonus interest on new savings of £20,000
....

• deposit your full £20,000 2017/2018 ISA allowance; or
• transfer in at least £20,000 from an existing ISA

NoodleDoodleMan

The terms in the summary box seem clear enough.

See Isasmurf's reponse at 4:10pm yesterday.

It's the MSE page that is the source of the lack of clarity.

NoodleDoodleMan

And after reading several times I still am not sure whether £20K can be transferred or has to be "new savings"

The lady at RBS advised that the £20K can either be transfered in from another provider from a previous tax year, or new funds credited 2017/18.

I would double check that if you are interested in this deal.

B_G_B

Applied for this ISA on 11/04. I am a new customer to RBS so needed to set up online banking etc. Received various bumph, account number etc over the following 2 weeks, but no activation code for online banking. I have called them 3 times over the last week and have been told that there has been an IT glitch that has prevented the txt going out, then txt sent to incorrect number, and now that code will be sent by post. Should be here around 8th-9th April. Account needs to be funded by 5th April to receive bonus. Don’t want to fund account without without full access to it. Frustrating.