Top Cash ISAs Discussion Area

10_66

Have you been told that the Tax Haven/Beater ISA automatically transfers into a standard cash ISA? As I understand it, the Tax Haven/Beater just drops the 1% bonus after 12 months from opening the account (or at any time, if Barclays wish to remove it).

gingerdennis

Did in my communication to them state that my (equivelent) tax haven isa for 2007-2008 shortly to finish, and would the rate drop to 5.50 . their reply of 4.26% has left me confused. trying to get into branch at the moment is rather difficult, so many people trying to get answers from their cust svc. was going to leave my isa with Barclays, but at 4.26% there is no point...or perhaps I am missing the point altogether.

10_66

It does seem rather an odd answer that they gave you. You'd expect the account to pay 5.50% when the 1% bonus is removed (unless they've got plans to reduce the rate on the account). A quick glance of their info on the product certainly seems to suggest that 5.50% (variable) is what you'd get, but I haven't waded through their T&C's to see if there's anything mentioned in them.

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=popup1group&value=14455&target=_blank&site=pfs

Chanina

Melodyx wrote: »

I'm booked in to see someone at my local Barclays to set up the Tax Haven ISA but just a bit concerned to note that it's a 'variable' rate. With all the talk about the credit crunch, perhaps Barclays will just reduce the rate? It's still a bit of a gamble going for one with a variable rate what with not having a crystal ball to know which banks will reduce their rates next tax year.

It also seems that it's possible to transfer in any case if Barclays go down this road - does anyone know how long you'd have to leave the money in before you can transfer? If not, I'll ask them when I go.

If anyone is concerned about Barclays variable rate offer or other variable rate offers, its worth noting that Nationwide is doing their one year fixed rate mini cash ISA at 6.15%, which I think is good for newbies like me.:money:

Im still considering which one to go for, as Im still a bit dubious (penalty or no penalty) about how long Barclays rate and introductory offer will last for.

Nationwide seems the best offer for stablity to me and since I am new ISA convert, I may go with them. (Unless anyone has any new info please let me know.)

I should add that Im only a convert Thanks to my reading Martin's article in the first instance and most of the postings in the second. Becuase of him and all of you I've really taken a new persepctive on how and where I invest/save my money. Im even spreading the word to family and friends (sounding now like an expert.) SO BIG THANKS! Knowledge is definetly POWER! :j

bristolleedsfan

Chanina wrote: »

its worth noting that Nationwide is doing their one year fixed rate mini cash ISA at 6.15%, which I think is good for newbies like me.:money:

U might like to also note that for 2008/09 Tax Year minimum investment of 3600 Bradford and Bingley are offering a One Year 6.25% Fix.

the_dreaded_lurgy

Hi, I am a litle confused about which is best, An ISA to avoid paying tax or a bank account which has a higher intrest rate than an ISA?

e.g. I accidentally ended up with a balance transfer credit card that was about £1600 to big. So I want to earn some interest on that for a year to help pay off the c/c balance when the intrest free period ends.

I have read lots of interesting things on the site and two things stand out,

1st) the Alliance & Leicster online Premier Direct account, pays 8.5% intrest but with tax.

2nd) Barclays Instant Access Tax Haven ISA pays 6.5% without tax.

Everything I have read on this site says always use your ISA allowance as much as you can but by my calculations (which could easily be wrong) it seems you would earn more intrest in the higher rate account even after tax deductions!

Am I right or way off the mark? Please let me know.

English_Bob

the_dreaded_lurgy wrote: »

Hi, I am a litle confused about which is best, An ISA to avoid paying tax or a bank account which has a higher intrest rate than an ISA?

e.g. I accidentally ended up with a balance transfer credit card that was about £1600 to big. So I want to earn some interest on that for a year to help pay off the c/c balance when the intrest free period ends.

I have read lots of interesting things on the site and two things stand out,

1st) the Alliance & Leicster online Premier Direct account, pays 8.5% intrest but with tax.

2nd) Barclays Instant Access Tax Haven ISA pays 6.5% without tax.

Everything I have read on this site says always use your ISA allowance as much as you can but by my calculations (which could easily be wrong) it seems you would earn more intrest in the higher rate account even after tax deductions!

Am I right or way off the mark? Please let me know.

As long as you're not a higher rate tax payer, your dead right. You have to pay 40% on your savings interest then. (doesn't sound too fair to me)
The savings rate must be 20% higher than the Isa rate for the same equivalent rate (40% higher for higher rate tax payers).
So, If the best Isa rate is 6.5% (which by the way it isn't .... see later) then you would need a normal savings account of 7.8% or above (9.1% for higher rate tax payers).
Remember, there are things you need to take into consideration. Will the tax paid on savings interest change, will you be able to get better deals on Isa's, will the current accounts conmditions change in the future. I think that there are so many accounts to choose from, its best not to get too bogged down.
I have just got the best on offer now and i will review my financial situation again regularly in the future.

(See Previos Posts)
The Best ISA is Alliance + Leicester Isa pays 10% as long as you open a NEW premier current account with them (have to pay in £500 a month). There are obviously other conditions with this , eg you can't transfer in existing Isa's and you can't open this account at all if you have existing A+L accounts, but if you are a NEW customer, you're quids in. (for this year anyway).

Bob

redmerlot

Can anyone help me, my husband andl have never paid into an isa before and have just had a policy mature and have £25,000 to save. We don't need it for a year or two so what is the best place for to put it.

I was looking at the Barclay tax haven but we guess it would be better waiting until after the 6 April for that one? as you can only put in new money.

I have a personal a/c with Natwest but their interest rate is not too good.

Crabman

Have you used this year's ISA allowance? If not then you may be able to put £3000 each into this year's allowance then a further £3600 each after 5th April... but check with the Barclays branch first to see whether they're still taking deposits for this tax year.

If you want to start a new thread on the Savings & Investments Board someone may be able to point out other ways of investing the lump sum.

glocal

Has anyone considered Abbey National's Direct ISA (issue 2) offering 6.25% variable for 13 months from opening, transfers in allowed? Sounds very similar to A&L's offer. I am wondering if there is something I am missing. It's just that there is an Abbey branch around the corner

Also, can you have two ISAs with different banks? If yes, you can go for the highest transfers in allowed offer and a new-money-only Barclays ISA.