Flexible ISAs

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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Gordon_the_MoronGordon_the_Moron Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Anybody know what the best flexible ISA currently available is? (asking for a friend who just asked me, I have the Coventry BS 1.5% that was available around April - I know nothing will come close to that available now)

I've advised him to open one with Nationwide (that's where his current account is) and keep as little as possible in it apart from in the first week of April and also open a Marcus account. Just wondered if Nationwide could be beaten, all the best buys listed are not flexible.
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  • edited 28 August 2019 at 4:45PM
    aceandy79aceandy79 Forumite
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    edited 28 August 2019 at 4:45PM
    I would say firstly, depends on how much is your friend looking to put into it? If they are not in danger of maxing our their personal savings allowance, they would probably get more options with a non-ISA instant access savings account.

    As they are with Nationwide already they could also consider converting their current account to FlexDirect which will pay 5% on balances up to £2500 for the first 12 months. Keep the right amount in that account at all times, and then put the rest of the savings in Marcus.

    If they've maxed out the personal savings allowance and need an ISA, then looks like Shawbrook is best available for unlimited access (£1,000 min deposit)
  • masonicmasonic Forumite
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    If the purpose of holding a flexible ISA is to preserve ISA status while earning a better rate of interest elsewhere, then the "best" flexible ISA would be one with a bank where you also hold a current account so can quickly and easily withdraw and deposit funds either side of the tax year.
  • Gordon_the_MoronGordon_the_Moron Forumite
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    He has a substantial amount (enough to use up about 80% of his PSA) I've advised him to use Marcus but fill his ISA allowance end of March/beginning of April then empty it again 6th April (the money is currently in a non-flexible ISA paying 1% - it would need transferring to a flexible one first) if he just throws his ISA protection out the window it could cost him if interest rates rise or he saves more. Since it will spend so little time inside the ISA the interest rate isn't a huge issue, just wondered what the best flexible rate was.
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  • MDMDMDMD Forumite
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    The Nationwide ‘loyalty’ ISA is flexible - if he qualifies for the highest rate (15 year) you get 1.1%. Not the best rate by any stretch but it’s not the worst.
  • GrowingoldGrowingold Forumite
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    There's the Ford Flexible ISA at 1.27%
  • edited 1 September 2019 at 12:21PM
    xxdeebeexxxxdeebeexx Forumite
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    edited 1 September 2019 at 12:21PM
    Nationwide Flexible ISA is really easy to move money in and out of.
    You also have a running total of what can be paid back in/ replaced within the tax year making it very clear.
    I use Nationwide because it is so easy and leave £15 ish in the account and fill up my Marcus account.

    A few days before the end of the tax year I move money back to the ISA. It can take several days depending on the account that the money is in.
    It's wise to leave plenty of time for the refill especially if weekends are involved.
    It's always worked for me and, if a great fixed rate ISA turns up, it can always be moved again.


    dx


    PS If you go ahead and switch to another ISA, the original ISA needs to be reloaded with any withdrawals before switching otherwise you loose the tax free status of the money that's not in the account at time of switching.
  • soulsaversoulsaver Forumite
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    aceandy79 wrote: »
    If they've maxed out the personal savings allowance and need an ISA, then looks like Shawbrook is best available for unlimited access (£1,000 min deposit)

    Shawbrook is not flexible... but 1.43% is equivalent to 1.79% taxable at basic rate if you've exhausted psa.

    https://www.shawbrook.co.uk/personal/savings/cash-isa-accounts/easy-access-cash-isa/


    Ford's 1.27 is flexible, is equivalent to 1.58% taxable at basic rate if you've used up your personal savings allowance...

    … or 2.11% for higher rate payers in the same circumstances.


    And Cynergy has a 1.56% 1yr fix to consider (1.825%BR & 2.43%HR equiv) … early access with penalty.

    https://www.cynergybank.co.uk/personal/isas/
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