Top Cash ISAs Discussion Area

tightwadman

Just wanted to warn forum members about a new ISA offering from the Saffron Building Society offering an amazing 7%!! BUT read the small print..

You WONT get 7% on your full £3600 allowance as you are not allowed to deposit a lump sum. Its one of those con-job regular savings type accounts and I think the max amout a month you can put in is £300 - so you will get 7% on your first £300 but after that the interest declines month on month. I estimate you will actually get around half the advertised 7% on any amount you invest over one full year.

You cannot transfer any existing ISA in so again not a good feature.

Best ISA currently on offer is the Natwest at 3.51% - but there are often late offers and rest assured banks and building societies certainly do want us all to keep on depositing our money with them - so they can make money out of our money!

tightwadman

Just wanted to warn forum members about a new ISA offering from the Saffron Building Society offering an amazing 7%!! BUT read the small print..

You WONT get 7% on your full £3600 allowance as you are not allowed to deposit a lump sum. Its one of those con-job regular savings type accounts and I think the max amout a month you can put in is £300 - so you will get 7% on your first £300 but after that the interest declines month on month. I estimate you will actually get around half the advertised 7% on any amount you invest over one full year.

You cannot transfer any existing ISA in so again not a good feature.

Best ISA currently on offer is the Natwest at 3.51% - but there are often late offers and rest assured banks and building societies certainly do want us all to keep on depositing our money with them - so they can make money out of our money!

rb10

That's a very good account, it's unlikely we'll see rates rise to that sort of level during the next year! Thank you for pointing it out.

Just be aware that once the year is up it automatically rolls over into an 'Easy Access ISA', which at the moment pays 0.85%. So as soon as the year is up, transfer the money out!

Mad_Ant

Don't know if this is the right place to ask this question.

I have £3,600 in an Egg Cash ISA, that has dropped to 3.05% at the moment. I also opened a savings account with Egg in September that has a fixed introductory rate of 6.3% for 12 months.

I don't know if I would be better moving the money from the ISA at 3.05% to the Saving account at 6.3% at least until the introductory rate runs out.

I am a basic rate tax payer. Can anyone advise? Thanks. :rolleyes:

King_Weasel

tightwadman wrote: »

Just wanted to warn forum members about a new ISA offering from the Saffron Building Society offering an amazing 7%!! BUT read the small print..

You WONT get 7% on your full £3600 allowance as you are not allowed to deposit a lump sum. Its one of those con-job regular savings type accounts and I think the max amout a month you can put in is £300 - so you will get 7% on your first £300 but after that the interest declines month on month. I estimate you will actually get around half the advertised 7% on any amount you invest over one full year.

This is no con. You can't expect interest on cash you haven't lent them yet. Of course the interest is only about half the advertised 7% over the full year. That's because over the full year they've only had (on average) half your money. This looks a good rate in anybody's book. If you've got the full £3600 now, find a good instant access (non-ISA) account and switch the money across each month.

tightwadman

You can't expect interest on cash you haven't lent them yet. Of course the interest is only about half the advertised 7% over the full year./QUOTE]

Is IS a con job in the sense that these accounts lure people in with a high headline rate like 7% knowing full well they will not read or understand the small print eg how many customers understand AER? If customers are not told anywhere in the documentation that they will actually receive only half of the advertised rate over 12 months on their total savings then this is surely misrepresentation. One customer has already successfully claimed money back from one of these misleading regular savings type accounts as he proved he had not been told the account was compounding interest when he thought he WOULD get the full annual rate...

Its out there, go google it...

mutley74

who is best ISA provider for a 1 yr fixed deal?

Lokolo

mutley74 wrote: »

who is best ISA provider for a 1 yr fixed deal?

• 1 Year Fixes:
• Norwich & Peterborough Fixed Rate Cash ISA - 3.30%
  Minimum deposit: £3,600.
  Notes: Fixed for one year from account opening.
• Dunfermline BS Fixed Rate ISA (issue 13) - 3.25% :starmod:NEW :starmod:
  Minimum deposit: £100.
  Notes: Fixed until 05/04/2010.

mutley74

Lokolo wrote: »

• 1 Year Fixes:
• Norwich & Peterborough Fixed Rate Cash ISA - 3.30%
  Minimum deposit: £3,600.
  Notes: Fixed for one year from account opening.
• Dunfermline BS Fixed Rate ISA (issue 13) - 3.25% :starmod:NEW :starmod:
  Minimum deposit: £100.
  Notes: Fixed until 05/04/2010.

Thanks for quick reply!
These seem to be postal or phone operated...who is best online account (as much prefer online access these days)..thanks

Lokolo

mutley74 wrote: »

Thanks for quick reply!
These seem to be postal or phone operated...who is best online account (as much prefer online access these days)..thanks

I actually just copied from this post:

http://forums.moneysavingexpert.com/showthread.html?t=401374