Easy Access Cash ISA with debit card.

MouldyOldDough

Do such things exist ?

Ch1ll1Phlakes

I don't think. Nor do I think using ISA funds to buy stuff on a card would be a good idea.

MouldyOldDough

Ch1ll1Phlakes said:

I don't think. Nor do I think using ISA funds to buy stuff on a card would be a good idea.

Why not - debit cards don't charge interest.

Kim_13

No savings accounts have debit cards as far as I’m aware. A limited number have cash cards, but these only work in cash machines and not for puchases.

Tryinghardtosave

I use Trading 212 - it has a Cash ISA and an invest account. They do a debit card for the invest account and you can very easily move money from your ISA in to the invest account to spend via the debit card and it pays a decent rate of interest. - message me if you would like a referral code for it. 

Ch1ll1Phlakes

MouldyOldDough said:

Ch1ll1Phlakes said:

I don't think. Nor do I think using ISA funds to buy stuff on a card would be a good idea.

Why not - debit cards don't charge interest.

Because of the ISA deposit limit and that an ISA is designed for saving not spending. Spending directly from these funds would mean that one purchase could wipe out multiple years worth of ISA limit.

ISAs aren't designed to be used for day to day transactions, that's what current accounts are for. Withdrawing cash to spend it is fine but spending directly from savings wouldn't be sensible for some people.

For example, if you lost your card, a fraudulent payment could wipe out someone's savings

surreysaver

Ch1ll1Phlakes said:

I don't think. Nor do I think using ISA funds to buy stuff on a card would be a good idea.

It would save the administration of constantly shifting money around. With flexible ISAs the money can be replaced as well 

Ch1ll1Phlakes

surreysaver said:

Ch1ll1Phlakes said:

I don't think. Nor do I think using ISA funds to buy stuff on a card would be a good idea.

It would save the administration of constantly shifting money around. With flexible ISAs the money can be replaced as well 

I think that administration layer of "I have to move this money before I can spend it" is part of the savings process and means some people won't make as many rash decisions with their money.

Secondly, debit cards are under payment regulations, not the standard savings and ISA regulations, therefore accounts with debit cards would require further administration and compliance issues for providers. 

surreysaver

Everyone manages their money differently. Not everyone makes rash decisions.

35har1old

Tryinghardtosave said:

I use Trading 212 - it has a Cash ISA and an invest account. They do a debit card for the invest account and you can very easily move money from your ISA in to the invest account to spend via the debit card and it pays a decent rate of interest. - message me if you would like a referral code for it. 

You could do the same with any savings account transfer to current account pay with DC

Ch1ll1Phlakes

surreysaver said:

Everyone manages their money differently. Not everyone makes rash decisions.

This is true but I like the fact there is a distinguishment between savings accounts and spending accounts.

A debit card function added to an ISA would still require further regulation as none of the current regulations would specifically cover payments from an ISA.

I'm not against the idea, spending directly from savings would save some hassle of moving funds. Just saying it's highly unlikely without regulatory changes.

EDIT: I've edited my previous posts for clarity in what I meant.