Cash ISAs paying in - best rates help

patijack

Hi all,

I currently have a t212 cash isa , the intro rate will soon fall to 3.60% this month

I am a bit overwhelmed but trying to navigate, hence seeking pointers/advice to look at please 🙏

Some isa providers have reduced transfer in rates eg Plum transfer in - 4.08% not their 4.61% advertised.

I’m a bit confused by this- what difference does it make whether my money comes from a previous isa account or my regular account?
Any suggestions welcome - I do need tax free savings

Wishing everyone a lovely day 😀

flaneurs_lobster

The basic difference is that Plum (& other providers) are seeking to attract "new" money rather than that which is already within an ISA.

It's a marketing decision, goes to what kind of customer they are trying to attract to the whole Plum multiverse.

Have a look at the Cash ISAs: The Best Currently Available List thread for an idea of what ISAs are attracting the forum's attention (and money).

GrubbyGirl_2

It's quite common for providers to have a different rate for transfers than new cash, indeed some don't accept transfers at all. Can I suggest you look at banks that don't have an initial bonus rate then you don't have to keep moving. If rates start falling you can look to fix.

I've just put this years money into Vanquis at 4.3%. No bonus rate cliff to fall off and they allow transfers in

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/81959436#Comment_81959436

Can you view the interest that's earned each day on the app?

Can everything be done online without anything by post? I.e can I open it today and fund it?

Can you transfer out whenever you want?

Thanks

GrubbyGirl_2

I've only just opened it so I can't tell you about the interest. There is no app but all online. Yes you can open it today subject to the usual checks they all do and yes you can transfer out.

All the details are here

https://www.vanquis.com/savings/isas/triple-access-isa/

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81959436#Comment_81959436

It seems to have become more common, especially with these newer fintech type players, most of which are not actually banks. Their usual model is just to put your money with another bank, so presumably they are making zero profit on offering these savings rates. They want to make money by getting the punter to engage with other parts of their operation, such as risky share trading.

OP As already explained, it seems these newer players are more interested in getting new customers than actually attracting the maximum amount of funds. So they offer top rates to get new customers to sign up ( usually including a bonus that disappears after 12 months) and are not wanting people transferring in potentially large sums of money to get those top rates.

As said, if you do not want to keep moving money around and also have no issues with transfers etc. you could be better off with a more conventional savings provider.