Problems with getting the best savings accounts - Any suggestions?

Middle_of_the_Road

This account will operate exactly like an ordinary savings account, you can deposit and withdraw without restriction, up to 20K a year.

5.10% AER Cash ISA | Chip (getchip.uk)

worriednoob

Middle_of_the_Road said:

This account will operate exactly like an ordinary savings account, you can deposit and withdraw without restriction, up to 20K a year.

5.10% AER Cash ISA | Chip (getchip.uk)

Thanks very much. That's great, but could you kindly assist me on my questions 3 and 4?

Bridlington1

worriednoob said:

1. I've never had or understood and ISA, so I'm very interested in the flexible ISA 5.1% with Chip.  But other than the £20K tax-allowance, how is it different from a normal easy-access savings account?

The main difference other than the ones you've mentioned is that you can't just withdraw, say, £15k from the ISA and transfer it straight into another ISA, you'd need to do an ISA transfer to do that. Other than that a flexible EA ISA behaves like any other EA account in that you can make withdrawals at any time and redeposit them into the ISA within the same tax year without it affecting your ISA allowance.

worriednoob said:

1. I need fast access to my money, so will I be able to transfer money in and out of chip quickly, like I would with a normal-easy access savings account?

Deposits and withdrawals from Chip have been instant and 24/7 in my experience.

worriednoob said:

1. Does having an ISA savings account mean I need to complete any tax paperwork or does the bank report to HMRC as they would for normal accounts?

I've never had to do any extra paperwork due to having ISAs.

worriednoob said:

1. Are there any withdrawal limits or penalties to expect?

Withdrawals are penalty free.

Middle_of_the_Road

worriednoob said:

1. Does having an ISA savings account mean I need to complete any tax paperwork or does the bank report to HMRC as they would for normal accounts?
2. Are there any withdrawal limits or penalties to expect?

Thank you again

1. You will sign an ISA declaration when opening the account. This is all that's required as far as the tax office is required. ISA accounts are not liable to any tax, and there's no requirement to report the interest thereon.
2. Not on this particular account. Some do have maximum number of withdrawals, and withdrawn money can't be replaced if it would exceed the 20K max deposit rule. The Chip account is flexible with no withdrawal or re-deposit limits.

worriednoob

Thanks guys.  I'm more clear with all your answers, except for the one about transferring.  Firstly I have no plans to transfer from one ISA to another ISA - Only transferring from ISA to current account and vice versa.  But hypothetically speaking if I put £15k into the Chip ISA can I transfer it out to a normal current account and transfer the £15k back into ISA again if I need to?

Also can I keep topping up the ISA with regular small deposits?

Middle_of_the_Road

worriednoob said:

Thanks guys.  I'm more clear with all your answers, except for the one about transferring.  Firstly I have no plans to transfer from one ISA to another ISA - Only transferring from ISA to current account and vice versa.  But hypothetically speaking if I put £15k into the Chip ISA can I transfer it out to a normal current account and transfer the £15k back into ISA again if I need to?

Also can I keep topping up the ISA with regular small deposits?

Yes, you can do both.
The flexible ISA allows withdrawn money (your 15K) to be replaced during the tax year.
A non flexible Isa would not allow that, as that would be a total of 30k deposited, so you would only be able to replace 5K.
 

MX5huggy

Wealthify are offering 4.91% in a simple savings account. 

35har1old

Middle_of_the_Road said:

There are no problems withdrawing large sums from the Ulster Loyalty saver, via the current account. I've been able to do this in the app by enabling biometric confirmation. 

You can make payments directly from the loyalty saver haven't exceed £5000 as of yet
Can make payments to a saved payee upto £20000
No biometrics required 

Bigwheels1111

Chip deposit and withdrawals are near instant.
They use open banking, you link your bank a to them, they can see what credits and debits you make.
From memory.

I can deposit or withdrawal in less than 30 seconds.
No matter the amount, 80k a time 18 months ago.

flaneurs_lobster

£20 from TopCashback at the moment for opening a Chip Cash ISA.