Top Cash ISAs Discussion Area

Chanina

English_Bob wrote: »

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

Bob I appreciate your answer to the point lurgy made about the tax incurred on normal savings accounts in comparision to taking out an ISA, it made sense and is worth considering, without as you say getting too bogged down wid it all.

However, I dont think its accurate to say that A&L is the BEST ISA.

A&L's rate is good for people who are considering going for an ISA that has a variable rate. So in that sense it probably offers the BEST VARIABLE RATE ISA.

Another drawback though is that you dont have to give any notice for withdrawals, which does prevent saving.

Oh and by the way you can transfer your ISA to them, but they ask that "50% or more of your previous years’ transferred funds go into a Stocks & Shares ISA."

Johnnn

I plan to subscribe to the Barclays Tax Haven ISA for 08/09 tax year to get the best rate, but they do not allow transfers in of previous ISAs.

I intended therefore to transfer my previous A&L Direct Mini Cash ISA issue 2 into their new Direct ISA Issue 4 giving a 6.25% rate for tax year 08/09, but A & L's web page seems to be saying that you can only transfer in if you first open a new Direct ISA - ie for tax years 07/08 or 08/09.

Can anyone confirm this?

Thanks,

John

skcollobcat10

Hello,

I don't know whether I've posted this in the wrong place, sorry!

I am new to ISA's. I opened up an account for the above by phone yesterday. The lady gave me an account number to transfer with my online banking. She said it works like this: 1st year interest on £3000 2nd year interest on £3000 3rd year interest on £3000 4th year interest on £3000. I went away and couldn't understand why the interest would not be compound. I discussed this with my husband and then this morning I telephoned Halifax about to cancel the account. Another lady then said that for the four years the interest made would be £814.00 this appears to look as though it is compound according to Martins calculator.

Could anybody tell me is this a good rate or am I better just doing a yearly Isa? They did say that if you come out before the 4 years you lose 180 days interest.

many thanks for your help.

sternjohn662200

Sorry if this has already been answered before. At the end of the year do you earn interest on what is currently in the savings or how much has been in the savings.

The reason I ask is that over the year I had saved £3000 for a new car and this money is no longer in the isa as have purchased car.

Cheers

bristolleedsfan

sternjohn662200 wrote: »

Sorry if this has already been answered before. At the end of the year do you earn interest on what is currently in the savings or how much has been in the savings.

The reason I ask is that over the year I had saved £3000 for a new car and this money is no longer in the isa as have purchased car.

Cheers

Interest is usually calculated daily and paid annually.

JimmyTheWig

skcollobcat10 wrote: »

She said it works like this: 1st year interest on £3000 2nd year interest on £3000 3rd year interest on £3000 4th year interest on £3000. I went away and couldn't understand why the interest would not be compound. I discussed this with my husband and then this morning I telephoned Halifax about to cancel the account. Another lady then said that for the four years the interest made would be £814.00 this appears to look as though it is compound according to Martins calculator.

Could anybody tell me is this a good rate or am I better just doing a yearly Isa? They did say that if you come out before the 4 years you lose 180 days interest.

Don't know what the first lady was saying, but the important thing is that you compare the AER with the AER of other ISAs. Assuming that it is 6.2% AER then that is a reasonable rate, certainly.
From the article you could get 6.5%, but that's only a one year deal.

If there is a fair chance that you will need to get money out within the 4 years then I'd say don't go for this one due to the loss of interest. But only you can really decide if it's right for you.

JimmyTheWig

sternjohn662200 wrote: »

At the end of the year do you earn interest on what is currently in the savings or how much has been in the savings.

The reason I ask is that over the year I had saved £3000 for a new car and this money is no longer in the isa as have purchased car.

Consider the reverse situation. You open an ISA with £1 in it for 11 months then put £3000 into it for the last month. What do you think they're going to pay you interest on? Clearly not the £3000.
And so I would imagine that the interest, though paid annually, is calculated daily.

Melodyx

When I opened my Barclays Tax Haven ISA on Saturday, I asked about the rate changing from 6.5% and was assured that it would stay at that rate for the full 12 months.

10_66

Whoever told you that's on very dodgy ground. If they could guarantee the rate to remain at 6.50%, it'd be a fixed rate ISA instead of a variable rate. Barclays don't even guarantee that the 1% bonus will remain for the full 12 months, they can remove it whenever they want to, although, they're not likely to do that otherwise everyone would transfer out.

adifor

bristolleedsfan wrote: »

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.

Do you know offhand if they allow transfers in with this ?