Cash ISA confusion

FrankieB_3

Hi All

Is there any provider that regularly offers decent cash isa rates to existing customers?

I’ve currently got £30k inc £20k added this year with Chip at 3.75%. Got totally shafted by them as I had a bonus rate but they hugely reduced their underlying rate part way through the year.

I’ve never previously had big savings & I find moving the ISA quite stressful, so would rather go with someone who consistently offers a decent rate that I don’t have to move to a new provider every year. I’m quite happy to fix for a year at a time as we have another ISA in my husbands name that we can dip into if required.

Hopefully this makes sense & someone may be able to help. Thanks

XzavierWalnut

They all shaft you. Best to shop around each time. It's quite easy to swap around.

flaneurs_lobster

Have a look at the current fixed ISA offerings at https://moneyfactscompare.co.uk/isa/fixed-rate-isas/

Few people here have just opened the NatWest/RBS 1yr fix at 4.72%, but your requirement for not having to switch each year is harder to accomplish, what may be available from them in a year is a complete unknown.

Cairnpapple

My spouse feels similar about moving cash ISA provider and has found that Leeds Building Society has consistently offered acceptable rates over the last few years. Obviously not as good as you would get with switching providers.

FrankieB_3

https://forums.moneysavingexpert.com/discussion/comment/82126753#Comment_82126753

Just checked & they’re offering 4.5% 1 yr fix which would be fine. Appreciate it’s not the highest but if I could get similarly decent each year, I’d be happy.
does he find it easy to fix each year?

Cairnpapple

https://forums.moneysavingexpert.com/discussion/comment/82126781#Comment_82126781

I can think of two occasions where the fix has finished and rolled onto a lower rate and he has ended up having to call them to get moved to the best new rate. I don't know whether that was just him missing an email or a lack of communication on the Leeds side but it wasn't a long wait on the phone and was resolved quickly. If you're an MSE person and set a reminder to look a few days before the fix finishes, I imagine you will do better than he did!

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82126781#Comment_82126781

Also worth considering Charter Savings Bank where for the last 9 years I have mostly been able to find competitive rates on both cash isas and ordinary savings products .

Currently their 1 year fix ISA is offered at 4.71% ( paid annually) or 4.61% paid monthly ( my preference). If they have a fault its not regularly informing exsisting customers of new deals which can disappear rapidly, once they have fulfilled their tranche matched lending requirements.

I see that like many fixed saving providers Leeds by contrast only offers interest on an annual basis, so for my cash flow requirements such providers are simply not versatile enough.

Whether this would matter to you, depends on whether you might need or want interest paid monthly. I note in this regard that your Chip instant access ISA would have had a monthly payout option.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82126887#Comment_82126887

I'd not go with Chip, even if they had the best rate. They recently shafted their existing ISA customers by dramatically dropping the interest rate (4.13% → 1.02%), and shortly afterwards came out with a new ISA with very sneaky T&Cs.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82127049#Comment_82127049

Only mentioned Chip's monthly income because OP already had savings with them.

Personally, I wouldn't look at any of the little savings institutions like Chip, Raisin etc, who are not banks but mere intermediaries providing a conduit to the actual savings provider.

All 18 of my primary savings accounts are with real banks, where I can see direct balance sheet relationship between the deposits they take ( their liabilities) and how this relates to lending to their respective target markets ( their assets).

I am old fashion in preferring that the institutions paying me interest should hold banking licences and be heavily regulated by the PRA on a transparent basis I can understand. Plenty of choice from that substantial cohort of proper banks and building societies, without having to resort to these small fintech platforms with comparatively tiny balance sheets.

FrankieB_3

https://forums.moneysavingexpert.com/discussion/comment/82126825#Comment_82126825

Thank you very much 😊😊

FrankieB_3

https://forums.moneysavingexpert.com/discussion/comment/82126864#Comment_82126864

Thank you.

https://forums.moneysavingexpert.com/discussion/comment/82127049#Comment_82127049

Thank you. Yes I got caught by this & it’s totally put me off bonus rate offers! It’s why I’m looking for 1 yr fixes now 🤷🏻‍♀️