Top Cash ISAs Discussion Area

Beatoff

Thanks for a really helpful number of posts. I think I'm beginning to understand the basics. I don't have any ISAs or other shares etc. This will be my first venture into that sort of thing. I could only find ISAs that pay around 3.20 % AER. Are there any better ones and are there any hidden catches I should look out for?

Lokolo_2

Beatoff wrote: »

Thanks for a really helpful number of posts. I think I'm beginning to understand the basics. I don't have any ISAs or other shares etc. This will be my first venture into that sort of thing. I could only find ISAs that pay around 3.20 % AER. Are there any better ones and are there any hidden catches I should look out for?

Well the main catch to look out for is that most ISA's include a Bonus in the interest rate which is only payable for a certain period (1 year normally) so you'd need to keep an eye on when the interest rate drops and transfer your ISA to a better paying one then.

Santander can top the rate you mentioned above, they have an ISA offering 3.3% instant access. Similarly, Barclays are offering 3.25%

rb10

jetfighter wrote: »

I'd like to open a new ISA for 2011-2012 with Santander as I'm a Santander customer, so can get this new snazzy 3.5% rate for customers (the tracker one Martin has just mentioned).

Do I have to wait until April 5th to open this new ISA for 2011-2012 or can I open it now?

jetfighter wrote: »

I tweeted the same question to Martin and he's told me to wait... ooh dilemma!

Provided you do not pay any money into the Santander ISA, then you would not be breaching the rules by doing this.

Another poster (who I believe works for Santander) has said on this forum that you have 30 days in which to fund Santander ISAs before they automatically close, so opening now and funding after 6th April (but within 30 days of opening) would be fine.

jetfighter

Thank you for that!

Money_Saving_Dude

Hi,

I've been trying to plough through the T&Cs of some of the cash ISAs but I'm struggling a bit. Is it normal that you have to read a 25 page fine printed document talking about everything under the sun the bank may do, AND THEN try to merge this with a particular document about the product you are interested in?

This seems a rather massive challenge, and seems unreasonable for an average layman. All I want to know is if I put my money in an ISA can I keep it in there for six months and then take it out with the six month interest applied. I know I can't put any more in, but I want to use the ISA as a short-term savings plan.

I seem to have read somewhere that you have to keep your money in for 12 months before you can claim any interest. If that is the case that is crap.

No doubt I'm going to be told it depends which company you take your ISA with -- which is why I've been trying to get my head around the T&Cs. But they are so complicated it is a joke. Why are they allowed to get away with it -- surely a 4 page limit of the major conditions is sufficient. Anyway, I digress...

Any help appreciated.

blueberrypie

Money_Saving_Dude wrote: »

No doubt I'm going to be told it depends which company you take your ISA with --

Yep, I'm afraid that's what you're going to be told - or rather, that it depends on which ISA you choose (rather than which company, as often one provider has a number of ISAs on offer).

It doesn't need to be as complicated as you're making it though. What you are looking for is an ISA which does not have a fixed term - that is, one which allows withdrawals whenever you want. You can find a list of the currently-available ISAs on the first post of this thread: https://forums.moneysavingexpert.com/discussion/401374 - it's updated regularly. The ISAs you need to look at are the ones which are described as Variable Rate. Any special or unusual conditions are noted under each ISA.

Generally with an instant-access ISA, interest is added once a year, or, if you close the account before that date, the interest is added just before you close it.

jetfighter

MoneySavingDude:

If we're talking your bog standard easy access ISA then...

If you take your money out and close your ISA after six months, upon closure you will get the interest that you accrued in those six months.

If you take your money out and leave your ISA open, then the interest will be paid on that particular product's interest pay date, i.e. 5th April 2012.

If you instead transfer your ISA to another provider after six months, the six months' interest will be paid into your ISA prior to the transfer, and the money transferred to your new ISA will be your original deposit plus six months' interest.

At least this is how it's always been in the past for me (and I have moved around a LOT of ISAs ) - obviously products will differ but if you can't spot anything specific in the T&Cs which goes against this, the above should apply.

Money_Saving_Dude

OK thanks guys. I'll check the link.

Appreciate the responses.

gunmaker

jetfighter wrote: »

Sorry if this has been asked already at some point in the last 50+ pages! But anyway...

I have a 2010-2011 Halifax ISA which I want to leave where it is. I'm not going to pay anything else into it. It's just sitting there as a nest egg. I've already filled it up for this year and have no desire to transfer it, at least until a better rated "transfers in allowed" ISA comes up.

Check your existing Halifax ISA interest rate isn't about to drop to 0.5%. If it is, you can phone them and move it to a new Halifax ISA which gives a higher rate @ 3%, which is probably more than you're getting now anyway. You can transfer it to a new Halifax ISA and open a new ISA with Santander for 2011-2012.

jetfighter

gunmaker wrote: »

Check your existing Halifax ISA interest rate isn't about to drop to 0.5%. If it is, you can phone them and move it to a new Halifax ISA which gives a higher rate @ 3%, which is probably more than you're getting now anyway. You can transfer it to a new Halifax ISA and open a new ISA with Santander for 2011-2012.

Thanks. But no, luckily the rate is a 12-month one and I'm keeping an eye on it. I only transferred my old (many years' worth) of ISAs to them very recently so I am hoping I won't need to switch for another 9 months or so, but will of course keep an eye out. Cheers.