ISA / LISA rates for new tax year.

LunaAndBelle

Hi all I hope everyone is well during those strange and difficult times. 

I’m normally pretty good with reviewing the interest rates every year for my ISA and LISA accounts but just a little confused what to do now with the changing of rates for this year. 

LISA - I’ve received a letter to say that the interest rate is going to drop to 0.35%. I’ve seen Nottingham BS have a 1.25% but if I do transfer my LISA I’m assuming the rates can drop the same anyway. Is it even worth transferring it aslong as I can still get the Government bonus I’m happy but wouldn’t say no to some additional interest. I’ve never transferred a LISA into a new provider so I’m assuming this is still the same process as transferring an ISA? 

ISA - Single access currently has 1.3% with Nationwide but i haven’t received any notification of this changing (yet) so I will keep this one. Should I expect a notification soon? 

Thanks in advance for any comments!

kuratowski

LunaAndBelle said:
Is it even worth transferring it aslong as I can still get the Government bonus I’m happy but wouldn’t say no to some additional interest. I’ve never transferred a LISA into a new provider so I’m assuming this is still the same process as transferring an ISA? 

Most people using this site would believe it is still worth transferring to get the best rate you can.  I think it is the same, but there is a complication that (a) there aren't very many LISA providers, and (b) not all of them accept transfers in.  There could also be difficulties opening a new account if you have passed your 40th birthday.

Single access currently has 1.3% with Nationwide but i haven’t received any notification of this changing (yet) so I will keep this one. Should I expect a notification soon? 

Yes, sadly the rate on this account was cut to 0.25% and you will be receiving a letter soon.  The best buys are with other providers, but if you wish to stick with Nationwide the best account they are offering now is a 1 Yr Triple Access Online ISA at 1%.

margaretx9

Paragon have a good lifetime isa paying 1.15% which can be operated online. Some reasonable fixed rate isas too given where we are - and they are a split isa provider so you can split and mix and do easy internal transfers between isas..
https://www.paragonbank.co.uk/savings/savings-accounts?tabid=cash-isas

Just one suggestion anyway.

Albermarle

Much gnashing of teeth about Nationwide rate cuts on this forum

https://forums.moneysavingexpert.com/discussion/6127098/nationwide-building-society-loyalty#latest

LunaAndBelle

Albermarle said:

Much gnashing of teeth about Nationwide rate cuts on this forum

https://forums.moneysavingexpert.com/discussion/6127098/nationwide-building-society-loyalty#latest

Ah yes, my lovely letter arrived this morning.