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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 7th Apr 15, 10:23 AM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    Top Cash ISAs 2015/16
    • #1
    • 7th Apr 15, 10:23 AM
    Top Cash ISAs 2015/16 7th Apr 15 at 10:23 AM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 2
    • colsten
    • By colsten 13th Jul 15, 4:14 PM
    • 9,325 Posts
    • 8,227 Thanks
    colsten
    do I always have to move my money to keep it in just the two ISAs?
    Originally posted by LTRT325
    you definitely do not have to keep your money in just 2 ISAs forever. You can put money into new ISAs every financial year.

    Most people will not leave their money in old cash ISAs, as these pay next to no interest. So transferring cash ISAs is a regular job for many people.

    It's slightly different fo S&S ISAs - there is usually not much, or any, reason to start a new S&S ISA each year.

    I read somewhere recently that you could only own 2 and now I am confused!!
    Originally posted by LTRT325
    misinformation / misunderstanding
    • silvercar
    • By silvercar 13th Jul 15, 7:01 PM
    • 37,954 Posts
    • 159,729 Thanks
    silvercar
    If I open a virgin money ISA that allows transfer in of old ISA, does that count as opening an ISA for this year? In other words I am amalgamating 4 ISAs opened previously into a new Virgin ISA, does that mean that I can't open another ISA elsewhere?
    • colsten
    • By colsten 13th Jul 15, 7:04 PM
    • 9,325 Posts
    • 8,227 Thanks
    colsten
    If I open a virgin money ISA that allows transfer in of old ISA, does that count as opening an ISA for this year? In other words I am amalgamating 4 ISAs opened previously into a new Virgin ISA, does that mean that I can't open another ISA elsewhere?
    Originally posted by silvercar
    "opening" is irrelevant. You can open as many as you like.

    "subscribing" i.e. depositing new money is where the restrictions lie. ISA transfers, as long as they are being carried out by the receiving ISA provider, do not count as subscriptions.
    • mauvelion
    • By mauvelion 15th Jul 15, 4:57 PM
    • 2 Posts
    • 0 Thanks
    mauvelion
    The Coventry account, offering 2.4% does NOT allow you to deposit money after they've closed it to new subscribers. So you might only be able to put money in for a few more weeks.

    They're telling me this is similar to a Bond. I've never heard of this before; I've never opened anything like this before, and probably never will again.

    Am on the phone to cancel the account now; and I just hope it doesn't affect my current ISA.
  • IS A waste
    Getting Out
    After years of building up cash ISA accounts I am now getting out of them as they mature. What is the point for a standard rate tax payer when every bank reduces the rate they pay on their ISAs by more than the 20% tax rate? It surely can't cost that much to administer?

    RIP ISA
    • jimjames
    • By jimjames 16th Jul 15, 12:04 PM
    • 12,775 Posts
    • 11,475 Thanks
    jimjames
    After years of building up cash ISA accounts I am now getting out of them as they mature. What is the point for a standard rate tax payer when every bank reduces the rate they pay on their ISAs by more than the 20% tax rate? It surely can't cost that much to administer?

    RIP ISA
    Originally posted by IS A waste


    If you're running ISAs for years with substantial balances then surely it would be worth looking at S&S ISAs rather than cash?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • eskbanker
    • By eskbanker 16th Jul 15, 12:54 PM
    • 8,224 Posts
    • 9,229 Thanks
    eskbanker
    every bank reduces the rate they pay on their ISAs by more than the 20% tax rate
    Originally posted by IS A waste
    Not sure what you're getting at here - if you're comparing ISAs with the equivalent taxable savings accounts then I don't see much evidence that every bank does this at all, in fact from a quick surf I didn't find any bank that offers ISAs at less than their equivalent taxable savings accounts, never mind more than 20% less. Obviously a number of banks offer more lucrative current accounts just now but that's not a like-for-like comparison....

    Just out of interest, when you get out of cash ISAs, what are you going into instead?
  • IS A waste
    My Sloppy Wording
    I wasn't comparing accounts with the same banks - and am not (really) suggesting a global banking conspiracy - but for some time the best 5 year bonds have been around 3.1% and the best cash ISAs have been 2.4%. I agree that some banks offer the same rate for both - e.g. 2.35% with a certain one - but why would you opt for that anyway?

    I also agree - S&S ISA's make sense - as does P2P maybe?
    • whattochoose
    • By whattochoose 17th Jul 15, 7:10 PM
    • 375 Posts
    • 95 Thanks
    whattochoose
    I had a variable rate ISA with the Halifax, but saw they were offering a 2 year fixed rate ISA offering 2%, so I've invested £30000 in that.
    I know the news today is that interest rates are expected to increase fairly soon, but not greatly, so I'm thinking the ISA I've taken out represents a reasonable rate of return given present circumstances.
    Do you agree?
    • colsten
    • By colsten 17th Jul 15, 7:21 PM
    • 9,325 Posts
    • 8,227 Thanks
    colsten
    I know the news today is that interest rates are expected to increase fairly soon, but not greatly
    Originally posted by whattochoose
    That's been the news for about two years now, and importantly, the news is no more credible, or desirable for the economy and for lenders, than it's been in the last couple of years.
    • xylophone
    • By xylophone 17th Jul 15, 10:15 PM
    • 26,885 Posts
    • 16,037 Thanks
    xylophone
    That's been the news for about two years now, and importantly, the news is no more credible, or desirable for the economy and for lenders, than it's been in the last couple of years.
    Eventually the boy who cried wolf was telling the truth.....
    • TomJ
    • By TomJ 18th Jul 15, 6:57 PM
    • 202 Posts
    • 96 Thanks
    TomJ
    What's the latest on the flexible ISA from the pre-election Budget (the idea you could take money out of an ISA and replace it in year without affecting your allowance)? I was announced that it would be in place by autumn, but I've since seen quoting Apr 16.
    I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
    • Archi Bald
    • By Archi Bald 18th Jul 15, 7:13 PM
    • 9,373 Posts
    • 7,429 Thanks
    Archi Bald
    What's the latest on the flexible ISA from the pre-election Budget (the idea you could take money out of an ISA and replace it in year without affecting your allowance)? I was announced that it would be in place by autumn, but I've since seen quoting Apr 16.
    Originally posted by TomJ
    I haven't seen anything new about it since it has first been announced.

    If you are planning on putting money into your cash ISA and then taking some or all of it out again, and then put it in again.....why not just use a normal current account that pays you a lot more interest than any instant access ISA? If you want to make sure you use some or all of your current year's ISA allowance, you can still put your cash into a cash ISA as late as April 5th next year.
    • TomJ
    • By TomJ 20th Jul 15, 9:29 AM
    • 202 Posts
    • 96 Thanks
    TomJ
    It's more about the money that's already in there; it makes sense to keep the amount allowed in the ISA wrapper as big as possible, lest the current situation wrt ISAs and current accounts may change. If the announced changes come in, and instant access ISAs are still a thing, you would be able to take all the money in the ISA (down to the minimum balance at least) out and have it earning more, put it all back in on, as you say, 5 Apr plus the current year's allowance, then repeat until such time as the rules change or it becomes more attractive to leave the cash in the SIA.
    I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
    • colsten
    • By colsten 20th Jul 15, 9:59 AM
    • 9,325 Posts
    • 8,227 Thanks
    colsten
    If the announced changes come in, and instant access ISAs are still a thing, you would be able to take all the money in the ISA (down to the minimum balance at least) out and have it earning more, put it all back in on, as you say, 5 Apr plus the current year's allowance, then repeat until such time as the rules change or it becomes more attractive to leave the cash in the SIA.
    Originally posted by TomJ
    I think you might have slightly inflated expectations as there is no evidence that the replacement of withdrawn amounts will apply to more than the current tax year's allowance (and only to cash ISAs).
    • TomJ
    • By TomJ 20th Jul 15, 9:42 PM
    • 202 Posts
    • 96 Thanks
    TomJ
    Possibly; on the other hand, you may be being a tad pessimistic. http://www.moneysavingexpert.com/news/savings/2015/03/budget-2015-flexible-isas-allowing-tax-free-withdrawals-and-deposits-to-be-introduced and http://www.ukbudget.com/2015-measures/flexible-isas.aspx don't say anything about only current year's allowance only being withdrawable, nor has anything else I've seen. You can switch money within ISA wrappers from shares to cash and vice versa these days, so that's not really an obstacle. But the vagueness is why I was hoping someone had seen something more concrete
    I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
    • colsten
    • By colsten 20th Jul 15, 10:09 PM
    • 9,325 Posts
    • 8,227 Thanks
    colsten
    Possibly; on the other hand, you may be being a tad pessimistic. http://www.moneysavingexpert.com/news/savings/2015/03/budget-2015-flexible-isas-allowing-tax-free-withdrawals-and-deposits-to-be-introduced and http://www.ukbudget.com/2015-measures/flexible-isas.aspx don't say anything about only current year's allowance only being withdrawable, nor has anything else I've seen. You can switch money within ISA wrappers from shares to cash and vice versa these days, so that's not really an obstacle. But the vagueness is why I was hoping someone had seen something more concrete
    Originally posted by TomJ
    If you could switch out and in ISAs from several years, you could bet your bottom dollar that all ISA rates would be even more terrible than they are already. Just look at the rates for ISAs that allow transfers in. Banks just won't be able to take in huge amounts of money at good rates, they would have to restrict the amount of money that goes into their best accounts.

    Aside from that, it could be an administrative nightmare for both, ISA providers and ISA holders, to prove that any money over and above the annual allowance has previously been ISA money.

    Let's compare notes when the details have been announced.
    • TomJ
    • By TomJ 20th Jul 15, 10:42 PM
    • 202 Posts
    • 96 Thanks
    TomJ
    The administrative nightmare for providers doesn't seem terribly nightmarish, as it was specified that money has to go back into the ISA it came out of in year; it doesn't matter if it's the "same" money, which is a null concept unless you're dealing in cash. Therefore all they have to do is add to the amount allowed in each year as money comes out in the same way as they subtract from it when money goes in. It even get's reset at the end of the tax year in exactly the same way.

    It may well make ISA rates worse, but they're pretty shocking as it is so not much of a change there; it remains to be seen if they rise in line with any base rate rise which, I suspect, is unlikely to affect current account interest rates as much (though I could be wrong).

    As you say, in absentia any news, wait out.
    I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
    • Mee
    • By Mee 24th Jul 15, 10:34 AM
    • 1,125 Posts
    • 1,056 Thanks
    Mee
    My Kent Reliance ISA is up for renewal. I can't decide whether to stick with their loyalty rates which are good: 1.75%/1 yr or 2.1%/2 yr / 1.51% (1% above) / Tracker 1 yr. I've looked at the Coventry but those rates still beat it after 1 and 2 years. Have thought about splitting the money across all three offers, but would rather keep it simple. Plus if the base rate is increased by the end of the year I can't see it going up by more than 0.25% to 0.75%. Anyone in a similar position?
    Free thinker.
    • redmarcus999
    • By redmarcus999 26th Jul 15, 11:37 AM
    • 3 Posts
    • 1 Thanks
    redmarcus999
    Barclays reducing ISA rates from sept 15
    i have 50k in two isa's with Barclays currently paying 1.5%, but i have had notice from them that they are reducing the rate to 1% from Sept this year. I am a 40% tax payer and have my salary paid into my bank (Barclays) every month.
    looking for the best place (isa provider) to put it? after reading all the above posts, i must say that im even more confused that when i started!

    1) i dont need instant access, but also don't want to lock it away
    2) like the idea of being able to "see" the cash when online banking, as i currently do
    3) looking for 2% if its out there

    any thoughts/help to steer me in the right direction would be appreciated


    cheers
    Marcus
    247 (my first 3)
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