Top Cash ISAs Discussion Area

typistretired

I would leave your 2012-2013 with GE Direct for now while the rate remains at 2.25%.

Principality Building Society is offering a regular isa saver at 3.00% which you can apply for online. This will give you £93.60 interest if you put the maximum £480 each month.

rossk26

typistretired wrote: »

I would leave your 2012-2013 with GE Direct for now while the rate remains at 2.25%.

Principality Building Society is offering a regular isa saver at 3.00% which you can apply for online. This will give you £93.60 interest if you put the maximum £480 each month.

Am I able to set up a brand new ISA for 2013/14, but still earn interest on the £2k in the GE Direct? Would it not be best to transfer the GE Direct into a new ISA for 2013/14, so all my money is on one place?

typistretired

All the easy access isa accounts which allow transfers in are not paying more than 2.25%. You missed out on the Leeds Building Society which was paying 2.55% on Saturday but closed on Monday as everyone was applying. Leave it where it is for now it will continue paying interest. I have an isa with Coventry Building Society that I opened years ago for one year (I think the isa max was only £3,600 at the time) and each year they have sent me renewal notices to keep it with them. I kept it with them again last year as they offered 3.40%. May move if this year's offer is low.

You can have several isas for different years and they all continue earning interest.

Only bundle all your isas together to get a better interest rate.

malc_b

Quote:
Originally Posted by malc_b
And how about a campaign to change the ISA rules so that all ISAs must accept transfers?

rb10 wrote: »

That would just result in the top ISA rates falling further.

Or some provider not offering any cash ISAs at all.

Why? Does a transfer really cost that much? IMO it is more that banks know people want to keep inside the ISA wrapper so they can offer a lower rate and people will still keep the money.

Except for the government daft idea of giving cheap money to the banks the business of the banks is get savings and lend them out. So they want to charge as much interest as possible on lending and give as little as possible on savings. Hence if the ISA rules allow the banks to off 2 products, where one is new savings and the other with transfer the banks can then use that to force the interest rate down on the transfer product. They know they have you over a barrel in that you don't want to come out of the ISA wrapper.

But the point is, since the government makes the ISA rules why should the rules allow this behaviour? Transfers are part of the ISA rules so why allow banks to implement only the rules they want? ISAs bring money into the banks so benefit them. The government loses tax. In effect ISAs give the banks cheap money. Best instant is 3%, 2.4% nett. so that costs the bank 2.4%. ISAs are generally less and those with transfers less again so they are cheaper than 2.4% to the banks. In effect the ISA scheme, designed to encourage people to save, has been hijacked by the banks to increase their profits, because the rules allow transfers to be optional.

rossk26

typistretired wrote: »

All the easy access isa accounts which allow transfers in are not paying more than 2.25%. You missed out on the Leeds Building Society which was paying 2.55% on Saturday but closed on Monday as everyone was applying. Leave it where it is for now it will continue paying interest. I have an isa with Coventry Building Society that I opened years ago for one year (I think the isa max was only £3,600 at the time) and each year they have sent me renewal notices to keep it with them. I kept it with them again last year as they offered 3.40%. May move if this year's offer is low.

You can have several isas for different years and they all continue earning interest.

Only bundle all your isas together to get a better interest rate.

So if I opened another ISA, and put in £480 a month so by the end of 2013/14 I would have filled it's allowance. Then that would give me 2 ISA's one with £2k earning 2.25% tax free, and another with £5,760 earning 3% tax free?

Would I then be able to transfer both of those into 2014/15? But then also still put in my allowance of £5,760?

innovate

rossk26 wrote: »

Then that would give me 2 ISA's one with £2k earning 2.25% tax free, and another with £5,760 earning 3% tax free?

yes (though I haven't verified your interest rates)

rossk26 wrote: »

Would I then be able to transfer both of those into 2014/15?

Yes, provided your existing ISAs are transferable then (not fixed term etc) and you find a suitable new one that allows transfers in

rossk26 wrote: »

But then also still put in my allowance of £5,760?

In principle yes but it depends on the terms of the 2014-15 ISA. Your cash ISA allowance for that tax year is likely to be more than £5,760 unless new ISAs get scrapped alltogether,

rossk26

Thanks for all the info and help guys.

I have found two Cash ISA's both offering 3%. Is one better than the other? Which one would you recommend?

http://www.newcastle.co.uk/savings/cash-isa.aspx - Pays 2% + 1% bonus if a 'Deposit' is made in the qualifying month.

http://www.principality.co.uk/en/Savings-Accounts/Fixed-Term-Savings-and-Bonds/1-Year-Regular-Saver-Bond-Issue-11.aspx - Pays 3% as long as a minimum of £20 and a maximum of £500 is paid each month

Also just found this too: http://www.nationwide.co.uk/savings/cash_isa/flexclusive_isa/default.htm - pays £2.5% with a 1% bonus until November 2014...

I have been looking at setting up a Flexclusive Current Account as well, which pays 5% on balances of £2,500

DragonQ

rossk26 wrote: »

I have been looking at setting up a Flexclusive Current Account as well, which pays 5% on balances of £2,500

You mean FlexDirect.

typistretired

rossk26 wrote: »

Thanks for all the info and help guys.

I have found two Cash ISA's both offering 3%. Is one better than the other? Which one would you recommend?

http://www.newcastle.co.uk/savings/cash-isa.aspx - Pays 2% + 1% bonus if a 'Deposit' is made in the qualifying month.

This is if you are buying a house with them.

http://www.principality.co.uk/en/Savings-Accounts/Fixed-Term-Savings-and-Bonds/1-Year-Regular-Saver-Bond-Issue-11.aspx - Pays 3% as long as a minimum of £20 and a maximum of £500 is paid each month

Can't see any problem with this one as you can be flexible with your payments each month.

Also just found this too: http://www.nationwide.co.uk/savings/cash_isa/flexclusive_isa/default.htm - pays £2.5% with a 1% bonus until November 2014...

You will be okay to open one of these if you open a flexdirect current account with them.

I have been looking at setting up a Flexclusive Current Account as well, which pays 5% on balances of £2,500

As previously posted you mean flexdirect current account.

You will need to keep open your first direct current account for your regular saver.

saintalan

I think with the Newcastle offer it's only the Cash Reward that's conditional on house mortgage with them. The rate bonus remains.