Regular saver ISA

F30_ABZ

Is there such thing as an ISA that accepts regular monthly deposits?
I have a set amount of money each money I'm able to save, and have exhausted other regular savings accounts. I am in the fortunate position where I have a high amount of savings, and being a higher rate tax payer, my interest on savings will exceed the £500 tax free savings amount. Therefore I need to open an ISA to save a monthly amount without having to pay tax on my interest.

I did open an ISA last year, and paid in a for a few months then it was closed for further deposits, so wondering if there is such a thing as a regular saver ISA or they only accept a lump sum upon opening.

Thanks!

Middle_of_the_Road

This is open by post or in branch, manage online.

Regular Saver ISA | Saffron Building Society (saffronbs.co.uk)

This has to be opened in branch, but can be managed online. 

Starter ISA Issue 11 | Nottingham Building Society (thenottingham.com)

refluxer

Easy access cash ISAs will obviously accept monthly deposits but if you're wanting a higher/fixed rate, then there a few ISA providers who allow deposits throughout the duration of the fixed rate term - the Barclays Flexible Cash ISA is one (although the previously-high rate has now dropped to the top easy access levels, unfortunately) and the T&Cs for the Shawbrook Fixed Rate Cash ISAs suggest that this is allowed.

Albermarle

nd the T&Cs for the Shawbrook Fixed Rate Cash ISAs suggest that this is allowed.

I believe the T's & C's also say this facility can be withdrawn at any time ?

Rheumatoid

refluxer said:

Easy access cash ISAs will obviously accept monthly deposits but if you're wanting a higher/fixed rate, then there a few ISA providers who allow deposits throughout the duration of the fixed rate term - the Barclays Flexible Cash ISA is one (although the previously-high rate has now dropped to the top easy access levels, unfortunately) and the T&Cs for the Shawbrook Fixed Rate Cash ISAs suggest that this is allowed.

I think Kent Reliance allow it as well.

F30_ABZ

I should say, I'm based in NE Scotland so some of the mentioned banks don't exist up here so unable to open in branch.

I used to have an ISA years ago where I could pay in monthly, but having opened one with Virgin in December then my monthly payments getting stopped, baffled me that all ISA's aren't open to allow regular deposits. 

Rheumatoid

Albermarle said:

nd the T&Cs for the Shawbrook Fixed Rate Cash ISAs suggest that this is allowed.

I believe the T's & C's also say this facility can be withdrawn at any time ?

Can't see anywhere that the specific facility to add funds at any point can be withdrawn. 

As per T&C's funds can still be added if the product is withdrawn:
"Please note that the Bank reserves the right to withdraw this product at any time. If the product is withdrawn, you can continue to put more money into your account until the expiry of the fixed term" 

eskbanker

F30_ABZ said:

I am in the fortunate position where I have a high amount of savings, and being a higher rate tax payer, my interest on savings will exceed the £500 tax free savings amount. Therefore I need to open an ISA to save a monthly amount without having to pay tax on my interest.

There's nothing actually wrong with paying tax, so it's generally best to aim for maximising your net return, rather than minimising tax as such - they're often the same but not always, i.e. 60% of a good rate may be better than 100% of a poor one, and if you're choosing ISA rates from what's available in branch in Aberdeen then they are likely to be below market-leading.

Even if avoiding tax is seen as a priority, there are other potential ways of achieving this, such as pension contributions or premium bonds....

PloughmansLunch

I quite like the idea of regular ISA savers, but would a £20k lump sum subscription on the 6th April at say 3.35% (£670 interest) outperform one of these RS ISAs fed by Chip/Tandem/Kroo etc? Assuming use of an ISA is due to being over the PSA and so tax would be due on the feeder account interest.

refluxer

Albermarle said:

nd the T&Cs for the Shawbrook Fixed Rate Cash ISAs suggest that this is allowed.

I believe the T's & C's also say this facility can be withdrawn at any time ?

As mentioned above, they state that you can continue to pay in after the product is withdrawn and right up until the end of the term which is different to their (non-ISA) fixed rate savers where you only get a week beyond the withdrawal date. Definitely a fairly unusual option as far as fixed rate ISAs go, although it's not a feature I've made use of personally.

Rheumatoid

refluxer said:

Albermarle said:

nd the T&Cs for the Shawbrook Fixed Rate Cash ISAs suggest that this is allowed.

I believe the T's & C's also say this facility can be withdrawn at any time ?

As mentioned above, they state that you can continue to pay in after the product is withdrawn and right up until the end of the term which is different to their (non-ISA) fixed rate savers where you only get a week beyond the withdrawal date. Definitely a fairly unusual option as far as fixed rate ISAs go, although it's not a feature I've made use of personally.

Yes, they seem pretty favourable terms. I'm going for the 2 year as I don't have the full 20k for a couple of months and the T&C's don't seem to preclude you sticking in another 20 on 6/4/24 and benefitting from what is effectively a 4.28% one year fix which might be pretty favourable come then.