New Cash ISA

dosh37

I have been looking for a new cash ISA for 2026/27. My starting point was the MSE top cash ISA list. Unfortunately, the MSE rating is mainly based on interest rates.

As soon as I started reading the small print I realised there are many hidden issues and catches:-

For example, FSCS limits that may not apply because the money is actually invested in different banks rather than the organisation itself. It appears to be impossible to determine which banks in advance.

'Transfers in' often result in a much reduced interest rate compared to the headline figure.

From past experience, I have little trust in providers that require the use of a smart phone app. So many of these have poor customer service. They require authentication methods that involve scanning passports, uploading selfie videos etc. I have found these processes to be poorly documented, don't work at all or take hours. When they do go wrong it is difficult to get customer support.

flaneurs_lobster

I'm starting to agree, I've done my time with the FinTech Bro's wizzy products and now looking around it's simply too hard to discover what exactly is being subscribed to, or finding a product that can be transferred from/to or if the rate is available only to new blood.

Decent rates can be had with bricks'n'mortar banks and building societies, with vanilla terms and without the flimflam (got 4.5% with SaffronBS last week, NLA) but it might cost you a few basis points.

eskbanker

MSE is quite open about the fact that they focus on rates, but there are more comprehensive listings at the likes of Moneyfacts, with some additional filtering capabilities, although I don't think they'd extend as far as being able to identify the best rate where the funds aren't deposited with other institutions, and for transfers in, without requiring selfies or an app to manage the product, so suspect you'll have some legwork ahead of you to narrow down your selection…

35har1old

https://forums.moneysavingexpert.com/discussion/comment/81953635#Comment_81953635

Even the bricks and mortar banks are encouraging you to use the app

Take HSBC use the app opened immediately open online takes 5 working days to process open in branch likely need appointment bring mobile phone or similar device

GrubbyGirl_2

I always focus on providers that have electronic transfers and are going to be easy to transfer out of when I want to. That often excludes those that provide the best rates like trading 212, plum, moneybox, tembo etc. I then check that they have FSCS protection in their own right, though I'm not averse to going with one that is part of a bigger banks protection I just need to make sure I don't have other money with them that will take me over the protection limit.

Radio99

https://forums.moneysavingexpert.com/discussion/comment/81954189#Comment_81954189

I was thinking of opening a cash ISA with Trading 212. Is there something in particular about their transfers that I should know about?

GrubbyGirl_2

They don't subscribe to the BACS electronic ISA transfer service, I have no idea why. This is the list of those that do

https://www.cynergybank.co.uk/personal/isa-transfers

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/81954983#Comment_81954983

I'm a bit like GrubbyGirl in my approach to opening ISA's. I don't go for any with a short bonus, 3 months was typical last year, but looking a bit better with 12 month this year. You have to watch out and where & when bonus is paid, and thus possibly tying you in for whatever period, so it really pays well to read the t's and c's thoroughly before committing yourself.
I am also very wary regarding ease of transfer.
On saying all of that, there have been good reports on this forum of transfers from Trading212, so with that in mind, have a good read before you proceed, so that you know beforehand, and are prepared in advance of a possible transfer when the boosted rate goes down.

Radio99

https://forums.moneysavingexpert.com/discussion/comment/81955243#Comment_81955243

Yeah. If it had been anything less than 12 month bonus, I wouldn't have considered it, but with that new customer bonus, it sticks it head above all the others. Interest is paid monthly & added to account.

I did skim through the docs. I'll have to download them & have a good look.