Fixed 1yr ISAs where you can pay in throughout term

MDMD

CrickJon said:

For those wondering, I just chatted to Lloyds and they have said there is a 60 day window to pay in the opening £3k into their 1 or 2 yr fixed rate ISA.

Their terms and conditions don’t mention anything about a 60 day window.

https://www.lloydsbank.com/assets/media/pdfs/savings/fixed-rate-cash-isa-conditions.pdf

edit: the 60 day thing is a Halifax rule, not Lloyds

https://www.halifax.co.uk/assets/pdf/savings/pdf/savings-account-conditions.pdf (p39)

Rich2808

MDMD said:

CrickJon said:

For those wondering, I just chatted to Lloyds and they have said there is a 60 day window to pay in the opening £3k into their 1 or 2 yr fixed rate ISA.

Their terms and conditions don’t mention anything about a 60 day window.

https://www.lloydsbank.com/assets/media/pdfs/savings/fixed-rate-cash-isa-conditions.pdf

edit: the 60 day thing is a Halifax rule, not Lloyds

https://www.halifax.co.uk/assets/pdf/savings/pdf/savings-account-conditions.pdf (p39)

CrickJon asked Lloyds - and they told him about the sixty day window - why would they make that up? This is as you highlight in the terms for the Halifax - but Halifax don't allow any more payments in after 60 days.

It doesn't say anything about how long you have to make the £3k deposit/transfer in the Lloyds terms. I did it on opening so can't say for certain.

Unless the terms explicitly rule something in or out (subject to ISA rules nationally) - its possible!

CrickJon

Thanks Rich.

Yes, I asked and was told in chat that I had 60 days to fund the £3k. I'd like to think the person I spoke to knew what they were on about MDMD!

subjecttocontract

I guess another way to look at it is.....If you deposit £3000 in a 2 yr fix ISA with Lloyds at 4.2% its going to potentially cost around £30 a year in lost interest.

Some might think that's a worthwhile exercise, some might not.

CrickJon

I think I'd only do the 1 year 4.45% if I do it at all. I have to decide if I think I could get that rate anywhere else when my fixed ISA matures in September.

I only have that cash ISA worth £10k (with Leeds BS) and a £33k S&S ISA with Barclays to boast about really.

All our other savings, approx another £20k are in high interest savings accounts, spread across my name and my wife's name to limit our interest exposure.

Rich2808

subjecttocontract said:

I guess another way to look at it is.....If you deposit £3000 in a 2 yr fix ISA with Lloyds at 4.2% its going to potentially cost around £30 a year in lost interest.

Some might think that's a worthwhile exercise, some might not.

Agreed.

But say you are expecting a windfall and might have £20k to invest in the autumn (having paid your £3k in this tax year) and base rates fall sharply and the best two year fixed rate then is 3.2%. Over the next 18 months you would gain £300 in interest at 4.2% vs 3.2% - so actually be £270 better off net in the end! Its marginally better if you have a Lloyds current account as the rates are a bit higher.

So yes - its a gamble but not a massive one! And of course rates might not drop - or rise -  but you have security of knowing the rate won't change and you can top up the ISA until April 2026!

If rates go up/don't drop - then you can invest the £20k elsewhere. But that is always the challenge with fixed rates anyway - what looked good 18 months ago looked terrible last autumn but now last autumn's fixed rates look much better than today's! 

subjecttocontract

I think I'm gonna stick all my 24/25 ISA contribution in my existing 1 yr Kent fixed rate ISA (5.4%) which has another 8 months to run to maturity.

gele

I'm in the same position as you CrickJon. I think we might have spoken before, My ISA matures 31.08. I'm feeling 4.45% will be where we'll be at anyway by September. The draw for me, is the paying in throughout the term, because it could be 4.45% in September but only 4% by Christmas and 3.75% by March. and the info on a 60 day funding window is useful to know so thanks for that. I'm like you, debating what to do. My husband has a fix maturing in May. Regular funding would be useful for him too but I don't think 4.45% will look as good in May as it might in September. Kent reliance or even Shawbrook might suit him better [not checked Shawbrooks rates]

matt_james27

refluxer said:

Barclays and Kent Reliance are two other ISA providers who allow continued contributions through-out the duration of the fixed rate period.

Shawbrook and Barclays only have a limited window for transferring in other ISAs, though. I'm not familiar with the Kent Reliance T&C's but a comment on another thread stated they have the same restriction.

edit: corrected my mistake below, meant to say transfer in to shawbrook's fixed ISA

 I asked shawbrook whether it is possible to withdraw transfer in to a fixed ISA at any point through the term, their reply today was as below:

"Good Morning,

You would be able to request an ISA transfer at any time throughout your 1 year term of your ISA.

At the time you would need to provider us with the providers account details, state how much you would be looking to transfer, if any of the funds are from a previous tax year and if there is any notice period.

We may be able to do this electronically depending on who your provider is currently.

Thank you,"

CrickJon

That sounds to me as though you've asked if you could withdraw from THEIR fixed ISA to transfer elsewhere. Not transfer into their fixed ISA at a random point in the fixed term?