Top Cash ISAs Discussion Area

thenudeone

ejv wrote: »

Why First Direct has advertised an ISA with 3.00% AER but 2.96% tax free? I thought all ISAs were tax free:huh:

Both rates are tax-free.

If interest is added to the account every month, it starts to earn interest itself, so monthly paying accounts always pay a slightly lower rate. The amount of interest you get is the same

Each month you'll get interest of 1/12th of 2.96%, or 0.2466%

If you invest £10,000:
After 1 month you will have £10024.67
In the second month you will earn £10024.67 x 0.2466 = £24.72 interest. repeat for 12 months and you will have £10,300 which is the same as an annual interest account paying 3%.

longster85

Hello everyone,

I'm extremely inexperienced when it comes to savings and ISA's.

I have recently inherited some money from my parents and I want to make sure I maximise the capital but i'm a little unsure what the best way to go is.

I had thought about investing in property but after a stressful few years I want to limit the stress whilst maximising the financial potential.

Is it best to use up my cash ISA first (if so which one would people recommend?)

Is it best then to put the rest into a savings account? (if so which one would people recommend)

The main thing is that whilst I want to maximise my interest I also want instant access because you never know what's around the corner.

I know this is a little long winded but the circumstances in which I have got the money is making me very cautious and eager to invest wisely.

caveat_emptor

First thing to decide is how long you want to lock your money away for then take a look at the Banking/Savings section on this site.
Check on other sites as MSE doesn't always have best rates available.

Consumerist

longster85 wrote: »

. . . The main thing is that whilst I want to maximise my interest I also want instant access because you never know what's around the corner. . .

So you seem to be looking for the highest rate(s) you can get in instant-access accounts.

If you pay tax then an instant-access cash ISA would probably be the best place for the first £5,640 and then an instant-access savings account for the rest. See the Banking & Saving menu at the top of the page. If you have more than £85,000 to invest then spread it between different institutions to maximise your FSCS cover. It's difficult to suggest any individual product because you may have other savings preferences which differ from account to account.

longster85

Thank you both very much.

I think I will put the first £5,640 into a cash ISA.

I am planning on going away travelling for a while so perhaps it would be a good idea to put up to £85,000 into a 1 year fixed bond instant access account and save the rest for emergency funds.

longster85

*1 year fixed bond account.

I may be new to this but even I realised that was a pretty basic error!

Sobraon

My nationwide bonus isa is dropping this month.
I want to just transfer but not subscribe this financial year (already subscribed to a different ISA with no transfers in).

Any pointers to providers who allow just a transfer (i.e no new money until April) please?

Consumerist

Sobraon wrote: »

Any pointers to providers who allow just a transfer (i.e no new money until April) please?

Try the <Best Cash ISAs currently available> thread. You can choose your preferences from this extensive list (e.g. fixed, variable, post, internet access etc.).

takethemon

just been on sainsbury's site. their isa rate is reading 2%, not 2.8% as mentioned.

Consumerist

It looks <here> as though the 2.80% applies to accounts opened by today, dropping to 2.00% from tomorrow. The rot continues to spread.