Cash ISA options and decisions - Shawbrook, Aldermore, Nationwide, non-ISA Fixed?
in ISAs & tax-free savings
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I have a few questions / thoughts relating to my ISA options.
At the moment, I am considering Shawbrook's 1 year fixed at 1.60% and Aldermore's 1.65%. However, I see that with Aldermore, if you don't reinvest when presented with maturity options, you have to time it well with another institutions' offering to transfer away, otherwise your matured Aldermore funds will go into a 30 days' notice account.
This is an issue, unless I've missed something. Anyone with recent experience of this? Transferring to nominated account would obviously affect tax wrapper.
That leaves Shawbrook - has anyone gone through this as an existing / new customer to transfer in funds - how quick / long did it take? It seems on maturity, it goes into a variable rate holding account, but at least you won't be hit with a notice period if you decided to transfer it away (like Aldermore) and potentially get caught up in the processing time.
Regarding Nationwide's Member Exclusive ISA which was 0.75% fixed until October 2022, it's a shame there's a 180 days early access penalty. But I guess even if it was 90 days, it probably wouldn't be worth doing to take out and pay into say Shawbrook's 1.60% 1 year fixed rate. If my maths is correct on 50k, you'd effectively make £12 on the first 3 months of that 12 month term? But looking at the remaining 5 months as a whole, you'd be better off by £85?
Having said all of that, if I don't currently have any other income other than from savings interest, I assume it will probably be better to take all of my ISA wrapped savings and save into normal fixed rate accounts?
I always thought there was the PSA and your personal allowance, but have learnt there's the 'starting saving rate'. In any case, for someone like me without any other income, I assume all my savings interest is tax-free if below ~12k or so (not that my interest is anywhere or remotely near that!).
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It sounds like you do not need to be in cash ISA savings accounts as you say . Unless maybe you will start earning again and have a lot of savings.
Apart from getting a better rate in non ISA savings accounts , you do not have these issues about transfers anymore.