Struggling to keep up with top ISA rates

jungleboy123

Hello,

As the BOE keeps moving the goalposts downwards  making it harder to score the top rate of interest (no pun intended).

I have now opened and moved accounts with Trading 212, Chip, Atom and Moneybox, so i think i would count and a existing customer and not be eligible for the boost. Idk why they keep doing these boost offers it makes it confusing and i keep switching!!

Can someone please tell me before i go silly which accounts i am eligible to open to give me the highest rate? I keep switching and the rate drops the month after....

Tembo at 4.8% looks like it might be the highest but their page says we're currently reviewing our rates and they blocked transfers in and i have no idea if that block has ended?

Thanks.

grumpy_codger

Well, if you want some stability, consider fixed-rate ISAs. Otherwise you are doomed to keep switching to get the best deals.
However, when rates are falling, expect the fixed rates to be lower than easy-access ones.
https://moneyfactscompare.co.uk/isa/

jungleboy123 said:

 Idk why they keep doing these boost offers

Is it not obvious? Bait-and-switch springs to mind.

Veteransaver

I'm wondering if just putting cash ISAs into money market funds is overall a better strategy? It's a big hassle keep switching providers about. Some money market funds should consistently beat Base rates at least.

InvesterJones

Veteransaver said:

I'm wondering if just putting cash ISAs into money market funds is overall a better strategy? It's a big hassle keep switching providers about. Some money market funds should consistently beat Base rates at least.

What makes you say that? I can't think of a single money market fund that beats base rate even temporarily, let alone constantly. They usually aim for SONIA which is usually a touch lower than BoE base rate.

allegro120

jungleboy123 said:

Hello,

As the BOE keeps moving the goalposts downwards  making it harder to score the top rate of interest (no pun intended).

I have now opened and moved accounts with Trading 212, Chip, Atom and Moneybox, so i think i would count and a existing customer and not be eligible for the boost. Idk why they keep doing these boost offers it makes it confusing and i keep switching!!

Can someone please tell me before i go silly which accounts i am eligible to open to give me the highest rate? I keep switching and the rate drops the month after....

Tembo at 4.8% looks like it might be the highest but their page says we're currently reviewing our rates and they blocked transfers in and i have no idea if that block has ended?

Thanks.

I've opened 6 this financial year.  Funded 4 from this year's allowance, that's an easy bit... the problems start when you want to do transfers.  In my experience: Transfers in - Tembo failed, T212 failed, Monument took over a month and I had to complain to get the transfer done, the only one went smooth and quick was CMC but I don't want to increase there because the funds are not protected by FSCS.  Transfers out - started 2 transfers (to Vida and Paragon) out of Monument, both failed.
Bouncing money between the accounts wouldn't be a problem if transfers worked.  I found it difficult to deal with moving funds in this "hit and miss" environment.  I feel like leaving it for now. At the moment all my ISA accounts are paying very good rates. Monument will drop to 4.25% on 29th May, that's disappointing because 50% of my ISA money is there but I can live with this.

Isarulesaretoocomplex

 Got some half decent fixes last month 4.56 4.51 4.49 and 4.3 so decided to fix all but one and left a sole variable flexible isa with ford money currently 4.35 which may drop to around 4.1 but opened a 4.26 oak north fix which has 30 days to fund so would still have that option. With the unexpected inflation rate jumping to 3.5 it may deter another .25 cut on June 19th so for me I'm happy I've fixed the majority. I've shyed away from the bonus ones after issues with 212 trading. And don't forget there's still a slightly higher rate on fixed rate standard savings if you're fortunate enough to have the 1000 personal allowance for basic rate taxpayers. It's fun juggling them around and no issues with cynergy oak north shawbrook NBS and Ford money. 

jimjames

InvesterJones said:

Veteransaver said:

I'm wondering if just putting cash ISAs into money market funds is overall a better strategy? It's a big hassle keep switching providers about. Some money market funds should consistently beat Base rates at least.

What makes you say that? I can't think of a single money market fund that beats base rate even temporarily, let alone constantly. They usually aim for SONIA which is usually a touch lower than BoE base rate.

Have you seen the Royal London MM fund? I believe it is paying slightly above base rate and has done for some time

InvesterJones

jimjames said:

InvesterJones said:

Veteransaver said:

I'm wondering if just putting cash ISAs into money market funds is overall a better strategy? It's a big hassle keep switching providers about. Some money market funds should consistently beat Base rates at least.

What makes you say that? I can't think of a single money market fund that beats base rate even temporarily, let alone constantly. They usually aim for SONIA which is usually a touch lower than BoE base rate.

Have you seen the Royal London MM fund? I believe it is paying slightly above base rate and has done for some time

Yes I have it - hasn't been any significant difference from SONIA as far as I can tell.

jungleboy123

looks like its not just me getting affected by what another poster said here, the bait and switch offers....

It feels easier on normal savings to move stuff about but this isa business is time consuming and complex. I need to be contributing to my £20k allowance this year but i dont know where to start....

Archerychick

I would start here - https://moneyfactscompare.co.uk/isa/easy-access-cash-isas/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

if you aren’t a chip customer that’s a great place to begin since the bonus is for 12 months. 

Altior

No different to changing your insurer every year. 

Financial platforms make their profits from sticky customers. They offer loss leaders or cost neutral enticement to get new customers that they hope will end up sticky. Some will, some won't.

If you put the effort in, you'll beat the outcomes of sticky customers.

The alternative is to dumb everything down to the lowest common denominator like the domestic energy price floor cap. Where the people who were willing to put the work in will lose out to the majority; those who didn't care, either/or don't have the inclination to spend a bit of time improving their personal finances.