Best cash ISA?

hurunui

I think Bradford & Bingley match the Halifax? I'm considering a move from First Direct after this month

YorkshireBoy

hurunui wrote:

I think Bradford & Bingley match the Halifax? I'm considering a move from First Direct after this month

B&B is the same rate at 5.00%, but there is also a monthly interest option at 4.89% gross.

Other differences...

Minimum operating balance - B&B is £1K, Halifax is £1.

Maximum account balance - B&B is £21K, Halifax is £30K.

Account holder minimum age - B&B is 18, Halifax is 16.

Source: https://www.moneyfacts.co.uk

simonhgreen

The problem with the "best" ISA is that it won't be for long, just as long as they can get the money in initially. They will then tend to drop the rate and rely on customer inertia to keep the money there.

My view is that the sensible thing to do is to invest on the grounds of consistency.

The Sunday Times has a databank every week which shows not only the top current ISA but also (& more importantly in my view) the most consistent over the last 3 years.

The consistent winner is Nationwide, so unless you want to drive yourself mad looking every week to see if the rate has been cut, Nationwide will consistently pay good returns.

Added to this is that many firms are now charging transfer fees of £25-30, which will more than wipe out any benefit you stand to gain by rate-tarting.

YorkshireBoy

@simonhgreen

I can see the reasoning behind the comments in your post, but let me counter some of your statements...

simonhgreen wrote:

My view is that the sensible thing to do is to invest on the grounds of consistency.

My view is to go for the best return with the least effort. I recently moved our cash ISA's from IF to the Halifax with 2 signatures! All other things being equal, we'll make well over £100 extra in interest this year. Halifax also paid interest from the day after our ISA's had left IF.

simonhgreen wrote:

The consistent winner is Nationwide, so unless you want to drive yourself mad looking every week to see if the rate has been cut...

With 1000's of MSE members, deals/changes don't stay quiet for very long before they're posted on here - whether good or bad.

simonhgreen wrote:

...Nationwide will consistently pay good returns.

Past performance is no guarantee to future performance.

simonhgreen wrote:

Added to this is that many firms are now charging transfer fees of £25-30, which will more than wipe out any benefit you stand to gain by rate-tarting.

I never discount fee charging providers at the "first pass". As with all things financial, you have to take a holistic approach and factor in the effect of these fees when planning your next move.