Top Cash ISAs Discussion Area

melbury

Many thanks for all of the information innovate.

Sadly I don't have enough for the FD 3% ISA, but will keep looking - would really like to get a little more than 2.5% if possible (like about 7%:))

innovate

melbury wrote: »

(like about 7%:))

You and me both, and the rest of the world....

Last time I got 7% for a cash ISA was with Icesave :eek:. Then the rot set in and the bankers consolidated their abodes into the various tax havens and left us with their debts.

jctwins

When it says the ISA has a 2.5% interest rate that includes a 2% bonus for a year, does that mean if your money doesn't stay in there for a year you only get .5% or that if it stays in for a year you get 5.5%?

Also if you pay your full amount now in March and it's a yearly interest payout do you get the full interest or only interest on the month or so it's been in there?

KTF

That means that after 1 year the rate drops from 2.5% to 0.5%.

You will get interest applied on the date that it will be added and/or the date that you close the account (unless it is a fixed term account that penalises you for an early withdrawal).

Consumerist

jctwins wrote: »

Also if you pay your full amount now in March and it's a yearly interest payout do you get the full interest or only interest on the month or so it's been in there?

You'll get the full 2.5%pa interest for the first year and 0.5% after that (assuming you don't transfer out before the end of the first year).

If you do transfer the ISA during the first year, you'll get 2.5%pa up to the transfer date and the interest earned will be transferred with the ISA.

Rizzi1927

Can anyone out there explain in simple terms how much I can invest in an ISA and what's the benefit of using this years?
I have some funds that I wish to lock away?
Thanks

Jevvers

£5640 this year (before 6 April). Not a great deal of benefit at the moment because rates are low but the tax free status lasts forever so if you take out one this year it means you have the possibility of getting better tax-free interest rates in the future.

Turks77

Hi,

Can anyone recommend a cash isa for the following:

Instant access / penalty free withdrawal
Interest daily or monthly

I am a First Direct and Santander customer if that makes any difference.

I have approx £2.5k to invest (not an isa transfer) but may need to spend it fairly soon so need to keep options open.

Many thanks

rb10

Turks77 wrote: »

Hi,

Can anyone recommend a cash isa for the following:

Instant access / penalty free withdrawal
Interest daily or monthly

I am a First Direct and Santander customer if that makes any difference.

I have approx £2.5k to invest (not an isa transfer) but may need to spend it fairly soon so need to keep options open.

Many thanks

Santander's Direct ISA pays 2.5% and is the highest rate instant access ISA that I am aware of.

Interest is calculated daily, and paid annually (or on closure of the account).

Note that the rate drops to 0.5% after 12 months.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237851469036&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

guileyrulez

I have a hypothetical basic question for Cash ISAs.

Last year I started the Tax year with £5000, and through savings I have deposited an additional £5000 in a Cash Isa with 2.75% interest.

The question I have is that, because my total savings are over my tax free allowance- does this mean I will be taxed on the £5k that, in effect, I already had? Or should I expect to receive the interest on the full £10k?

Thanks for your help in advance,

Alex