Coventry BS launching tomorrow 6 April Fixed Loyalty cash ISA 4.4%

schiff

A point for clarification please. I've got last year's fixed rate/term cash ISA maturing in September 2023.
Can I at that time open a fresh (second) cash ISA for this year, to receive the maturing funds from last year's contributions - provided I don't add any new money into the second one?
TIA

nottsphil

justwantedtosay said:

nottsphil said:

allegro120 said:

TiVo_Lad said:

Have they indicated what the Loyalty criteria is/are?

No, they just said that I can login, view and open it tomorrow.  No other details except it's 4.40% fixed until 31.05.2024‌.  Good timing, I was going to fund my 4.25% loyalty YSB tomorrow morning.

That could be folly. Lots of other people shifting money out could force YBS to up the rate by 0.25% to 4.5% (for first £20000). Then you'd be kicking yourself because you would be trapped at 4.4%, unless you paid the withdrawal penalty.

IF YBS did offer 4.5% you could gain £20. Not sure that counts as folly or a reason to kick yourself, not very hard anyway. 

The person I quoted changed their mind in order to gain just £30 (presuming the same capital on which your calculation is based). So, kinda the same criticism that you are implying.

fryedslyce

schiff said:

A point for clarification please. I've got last year's fixed rate/term cash ISA maturing in September 2023.
Can I at that time open a fresh (second) cash ISA for this year, to receive the maturing funds from last year's contributions - provided I don't add any new money into the second one?
TIA

Not according to what it says on the Coventry website: "Transfers of previous years' ISA savings are not allowed"

Ocelot

justwantedtosay said:

Tempting, but my concern is that I might be getting a really good rate for a year but by the time I need a new account in 2024 rates will have gone down significantly. I don't think anyone has much idea about which way rates are going; I was just looking through loads of providers' offers and some, the largest group, show that the longer you fix for the lower the rate you'll receive, some the opposite, though the change is much less, and a couple offer the same rate regardless of time.

Some 5 year fixes are down around 3%, which must signal they expect rates to be much lower in the not too distant future. If you take this 4.4% but find the best fix you can get next year is 3% you'll be a lot worse off than if you fixed for 5 years now at 4.2%. Obviously something could happen to make next year's rates much higher than they are now. I made the mistake of transferring into one of these loyalty fixes at 2.7%, I doubt 4.4% would be such a bad move but I have opted for 5 years at 4.2%. Only time will tell if it was the right choice, but if the base rate and RPI fall back as far as many expect, I'll be laughing. Especially if the predictions of negative inflation come true. 

I you know you only want to fix for a year I'd grab this offer with both hands though! 

I tend to go for 3 year fixed rate ISAs, particularly for the reason you say - rates could be a lot lower during that term..

Shedman

justwantedtosay said:

Tempting, but my concern is that I might be getting a really good rate for a year but by the time I need a new account in 2024 rates will have gone down significantly. I don't think anyone has much idea about which way rates are going; I was just looking through loads of providers' offers and some, the largest group, show that the longer you fix for the lower the rate you'll receive, some the opposite, though the change is much less, and a couple offer the same rate regardless of time.

Some 5 year fixes are down around 3%, which must signal they expect rates to be much lower in the not too distant future. If you take this 4.4% but find the best fix you can get next year is 3% you'll be a lot worse off than if you fixed for 5 years now at 4.2%. Obviously something could happen to make next year's rates much higher than they are now. I made the mistake of transferring into one of these loyalty fixes at 2.7%, I doubt 4.4% would be such a bad move but I have opted for 5 years at 4.2%. Only time will tell if it was the right choice, but if the base rate and RPI fall back as far as many expect, I'll be laughing. Especially if the predictions of negative inflation come true. 

I you know you only want to fix for a year I'd grab this offer with both hands though! 

If undecided about how long to fix then Paragon Bank offer an ISA portfolio advantage in that you can open several length fixes and split the £20k between them without breaching the rules.  Their rates for 18mth, 2yr and 3yr are competitive and 28 days to fund so can wait to fund to see if anything better appears (or decide how much into put into each pot)

tiger70

I subscribed to a Coventry ISA last tax year and it matures this November, can I open another one with the same bank this tax year ?

Ocelot

tiger70 said:

I subscribed to a Coventry ISA last tax year and it matures this November, can I open another one with the same bank this tax year ?

Yes, you can have as many with the same BS or bank as you like in general.

schiff

fryedslyce said:

schiff said:

A point for clarification please. I've got last year's fixed rate/term cash ISA maturing in September 2023.
Can I at that time open a fresh (second) cash ISA for this year, to receive the maturing funds from last year's contributions - provided I don't add any new money into the second one?
TIA

Not according to what it says on the Coventry website: "Transfers of previous years' ISA savings are not allowed"

I didn't make it clear enough. My Paragon cash ISA matures in September 2023. I will have the current Coventry cash ISA. Can I transfer the Paragon 2022/23 ISA into a new one - say with Leeds but not with my new Coventry - provided I don't deposit any additional funds into the Leeds for the rest of the 2023/24 tax year?

badger09

schiff said:

fryedslyce said:

schiff said:

A point for clarification please. I've got last year's fixed rate/term cash ISA maturing in September 2023.
Can I at that time open a fresh (second) cash ISA for this year, to receive the maturing funds from last year's contributions - provided I don't add any new money into the second one?
TIA

Not according to what it says on the Coventry website: "Transfers of previous years' ISA savings are not allowed"

I didn't make it clear enough. My Paragon cash ISA matures in September 2023. I will have the current Coventry cash ISA. Can I transfer the Paragon 2022/23 ISA into a new one - say with Leeds but not with my new Coventry - provided I don't deposit any additional funds into the Leeds for the rest of the 2023/24 tax year?

Yes you can do that. HMRC rule is that you can only pay new money into 1 ISA (of each type) each tax year. You can transfer previous years’ subscriptions into as many ISAs as you wish, as long as you use the new providers’ transfer process. 

This is useful if you wish to keep within the FSCS limit, or want to ‘ladder’ your maturity dates. 

jd84

Did anyone else notice the monthly interest version must be paid into a different account?

However the website still lets you select adding it to this Isa...

Annual interest can be added to the account or paid into another suitable account. Monthly interest must be paid into another suitable account

Does anyone know why that might be?

I can understand them rejecting future deposits once the issue closes, but surely they could accept their own interest?