Coventry BS Easy ISA (5)

Stompa

david78 wrote: »

Mine (Issue 6) is also reducing to 1.05%. But these are flexible ISAs so you can just withdraw money and pay into a better paying instant access (non ISA) account. Then if you want, you can put the money back into the Coventry ISA before the tax year ends. Then look to transfer it somewhere else.

Indeed, I've just opened a Coventry Limited Access account (1.35%) in order to do precisely that. Only a small gain in interest, but requires minimal effort.

Gambler

david78 wrote: »

Mine (Issue 6) is also reducing to 1.05%. But these are flexible ISAs so you can just withdraw money and pay into a better paying instant access (non ISA) account. Then if you want, you can put the money back into the Coventry ISA before the tax year ends. Then look to transfer it somewhere else.

QUOTE]


What a great idea. Now I just need to find my log in details !


Can you do this for the full amount in the ISA or is it restricted to 20K for the current tax year?

Stompa

See here:

https://www.moneysavingexpert.com/savings/flexible-ISAs/

Tom99

Stompa wrote: »

Indeed, I've just opened a Coventry Limited Access account (1.35%) in order to do precisely that. Only a small gain in interest, but requires minimal effort.

And its now 1.40% but only for 1 yr

david78

Gambler wrote: »

Can you do this for the full amount in the ISA or is it restricted to 20K for the current tax year?

The link Stompa provides tells you all you need to know.


There are no restrictions. But you must leave the minimum balance in the account to keep it open. This is £1 with the Coventry Easy Access ISAs. So keep £1 in the account.


If you don't need access to the money, you can still get a 1.80% fix for 6 months with Atom Bank. This will mature this tax year, allowing the money to be paid back to the ISA.

Stompa

Tom99 wrote: »

And its now 1.40% but only for 1 yr

Yes, I know. So I'm now back to the 1.40% I originally had in the ISA before they dropped the rates.

Gambler

david78 wrote: »

The link Stompa provides tells you all you need to know.


There are no restrictions. But you must leave the minimum balance in the account to keep it open. This is £1 with the Coventry Easy Access ISAs. So keep £1 in the account.


If you don't need access to the money, you can still get a 1.80% fix for 6 months with Atom Bank. This will mature this tax year, allowing the money to be paid back to the ISA.

Thanks for the reply. Unfortunately it's not going to work for me due to the limit of £500 interest.

I could transfer the ISA but most of the market leaders are not flexible. Usually this wouldn't be a problem but I may need funds to buy a house before selling current one.

david78

Yes - You do have to watch the tax.


With a 1.8% interest rate you need £27777 to make £500 pounds interest (the savings allowance for a high rate tax payer). You pay tax at the higher rate on interest above £500, but the rate after higher rate tax (1.08%) still beats the Coventry's 1.05% (just). You may also be able to increase the savings allowance to £1000 by making enough payments into pension -- but this is going off topic.

Gambler

I wonder if they'll raise the rate again, then reduce it a few months later !?


Just checked their website. Easy access ISA 8 increasing from 1.05 to 1.25 from 01 September.


I assume the others will be the same? Yes they are. well apart from 7.


https://www.coventrybuildingsociety.co.uk/content/dam/cbs/consumer/pdf/savings/New%20Savings%20Rates%201%20September%202018.pdf

thor

Gambler wrote: »

I wonder if they'll raise the rate again, then reduce it a few months later !?


Just checked their website. Easy access ISA 8 increasing from 1.05 to 1.25 from 01 September.



https://www.coventrybuildingsociety.co.uk/content/dam/cbs/consumer/pdf/savings/New%20Savings%20Rates%201%20September%202018.pdf

Was this 1.30 % a few months ago? So Coventry have pocketed the entire 0.25% boe rise plus a little 0.05% on top. Yep they sure don't act like the banks...NOT!