Cash ISA rate through the floor

melbury

The interest rate on my cash ISA has dropped to 0.25% (last year it was about 1.45% and I thought that was bad).
I have been trying to find an alternative, but they are all pretty appalling.  
Just wondered if anyone knows of a good one that I might have missed.  
As I am old, perhaps I should just take it out of the ISA and look for an ordinary savings account paying a bit more.

83705628

Depends how much you're talking about, if you would end up paying tax on the interest if that tax would mean you actually end up with less than best cash ISA. The best easy access savings and cash ISAs are both NS&I right now.
https://www.moneysavingexpert.com/savings/best-cash-isa/#easyaccesstable
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Albermarle

As I am old, perhaps I should just take it out of the ISA and look for an ordinary savings account paying a bit more.

Your age is not relevant , it is how much income you have, what tax rate you pay  and how large your savings are.

For most people saving in an ISA is not necessary anymore as a substantial amount of interest is tax free, up to a limit.

I

melbury

Thanks for your replies.

Certainly not a tremendous income - state pension and a bit of income from part time working, so very much a basic rate taxpayer.

I checked out the NS&I cash ISA, but you can't transfer funds in from a previous ISA.

ivormonee

You can do better than 0.25% although all rates are paltry.

Best one year fixed rate account pays 1.05%

As a basic rate taxpayer you end up with 0.84% after tax.

Best one year ISA account pays 0.70% with no tax deducted.

Based on today's rates you would therefore be better off with a non ISA account as you would earn more even after having tax deducted.

And if you don't use all your tax allowances you wouldn't even pay tax on the non ISA account so would end up with the full 1.05%.

There is not a too dissimilar story with instant access accounts.

lisyloo

I opened cynergy bank yesterday 0.9. I think this is highest if you want access and xfer.
i think you’d be better off with an isa if you are looking for instant access.

Pfffill

Al Rayan instant access currently pays 1.35%, dropping to 1.1% mid-August. It's FSCS protected to £85k. Best in class I could find. 

eskbanker

Pfffill said:

Al Rayan instant access currently pays 1.35%, dropping to 1.1% mid-August. It's FSCS protected to £85k. Best in class I could find. 

https://www.alrayanbank.co.uk/savings/isas/instant-access-cash-isa/ says 0.6%, are you perhaps referring to a product that's no longer available?