MSE News: Savers abandon cash ISAs in wake of new tax rules

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  • bail-in
    bail-in Posts: 169 Forumite
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    jimjames wrote: »
    Savings rates are not awful but they do need some effort to get the best. I get 4% on all my cash savings, way more than any cash ISA.

    Is that 4% rate for fixed term or instant access. The higher rates for instant access tend to be only for small amounts. The highest instant access account I am aware of for high deposit amounts, up to £20,000, is Santander at 1.5%. Do you know of any others?
  • binaryuniverse
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    bail-in wrote: »
    Is that 4% rate for fixed term or instant access. The higher rates for instant access tend to be only for small amounts. The highest instant access account I am aware of for high deposit amounts, up to £20,000, is Santander at 1.5%. Do you know of any others?

    You need to have a few interest paying current accounts, and spread the money around them. Doing that you can get a decent average interest rate. For example, over 6 accounts, I'm currently getting 5.4% on my total balance.
    Caveat is that I'm also including reward account payments in that (well, it's money added on, isn't it?). Remove those and it's 3.9%.

    So it takes a little more setup work than simply dumping the lot in a Santander account. But once automated, I don't have to think about it too much.
  • TheShape
    TheShape Posts: 1,781 Forumite
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    jimjames wrote: »
    Savings rates are not awful but they do need some effort to get the best. I get 4% on all my cash savings, way more than any cash ISA.
    wymondham wrote: »
    That's good, please let me know who they are and can I invest without limit and hopefully its not one of those temporary invest x a month up to Y etc.....

    If you don't want to make the effort, you don't get the reward. That's your choice!
  • phillw
    phillw Posts: 5,595 Forumite
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    edited 2 September 2017 at 5:42PM
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    robin58 wrote: »
    It's bad that I can make more money taking it out of an ISA and buy something then to sell it at a profit for more money I would get in interest.

    There has to be more profitable ways of earning money, or nobody would be able to afford to borrow the money that you are saving. Interest doesn't magically come from thin air.

    In the golden days when interest rates were better, you could still make more money doing other things. Although arguably those things led to the financial collapse.

    If you have more money than you can fit into 5% accounts and you don't know what to do with it, then you should find a decent IFA and pay them.
    robin58 wrote: »
    How are the banks and Government going to encourage us to save.

    Getting people to pay into auto enrollment pensions is one way. When we're out of the EU then the government look like they will relax/remove mortgage affordability checks. I don't think the well off middle classes are high on the priority list for them right now.
  • jimjames
    jimjames Posts: 17,676 Forumite
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    bail-in wrote: »
    Is that 4% rate for fixed term or instant access. The higher rates for instant access tend to be only for small amounts. The highest instant access account I am aware of for high deposit amounts, up to £20,000, is Santander at 1.5%. Do you know of any others?

    Instant access and I have up to £20k in the accounts
    wymondham wrote: »
    That's good, please let me know who they are and can I invest without limit and hopefully its not one of those temporary invest x a month up to Y etc.....

    I didn't say it was without limit but when 70% of the UK have under £2000 savings it would easily cover them plus anyone who has up to £20k or so. Your choice if you don't want to bother though, just don't moan that there are no decent rates available.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • msallen
    msallen Posts: 1,494 Forumite
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    wymondham wrote: »
    That's good, please let me know who they are and can I invest without limit and hopefully its not one of those temporary invest x a month up to Y etc.....

    Do you mean invest or save? As a single person you can easily save £30K+ at over 3% interest (more than double as a couple), without going anywhere near the Santander 123. A few hours work to set it all in place across multiple accounts then nothing else to do.

    Anything over that amount typically doesn't need to be in cash savings for the overwhelming majority of people who should be investing the rest.
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