Tell us you cash ISA questions
Comments
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It will be some time before ISA providers will be ready for this ("autumn" is a good hint).
If you want an account that pays interest and unlimited deposits and withdrawals, use an interest paying current account. It will pay you more interest than an ISA anyway.0 -
So many contributors suggest that some current accounts pay much better rates of interest than ISAs. This is true but for many people, this is not really an option. For example, apart from a state pension, I only work part-time on a self-employed basis and, therefore, only receive fairly small and irregular payments which can be paid into a current account.
I have transferred my previous years' ISAs into a one-year fixed account and I am now pondering the best option regarding a new ISA for the current tax year. As I am unlikely to be liable for income tax in the future, would I be better using an easy access savings account (I do not want to open another fixed-rate ISA)?0 -
So many contributors suggest that some current accounts pay much better rates of interest than ISAs. This is true but for many people, this is not really an option. For example, apart from a state pension, I only work part-time on a self-employed basis and, therefore, only receive fairly small and irregular payments which can be paid into a current account.
I have transferred my previous years' ISAs into a one-year fixed account and I am now pondering the best option regarding a new ISA for the current tax year. As I am unlikely to be liable for income tax in the future, would I be better using an easy access savings account (I do not want to open another fixed-rate ISA)?
Why is it not an option?
I'd say the opposite. For the majority of people with under £2000 of savings a current account (or two) is vastly better than any ISA.
If you are an non taxpayer an ISA is even more irrelevant if you have a small amount of savings.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Except that most high interest current accounts need to be fed with a minimum amount each month, which I could not commit to.0
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Except that most high interest current accounts need to be fed with a minimum amount each month, which I could not commit to.
It doesn't have to be salary.
If you have under £500 of savings then it could be a problem but otherwise just move the money in and out again.Remember the saying: if it looks too good to be true it almost certainly is.0 -
If you have under £500 of savings then it could be a problem but otherwise just move the money in and out again.
It wouldn't be a problem even then, as you could make the monthly £500 deposit out of, say, 5 x £100.
Also, you can move the money out first, and then put it back in again.0 -
Archi_Bald wrote: »It wouldn't be a problem even then, as you could make the monthly £500 deposit out of, say, 5 x £100.
Also, you can move the money out first, and then put it back in again.
That's very true but obviously a lot more hassle to do with 5 x £100 for what may be a small return.
But it sounds like the balance of the account wouldn't be a problem for them if they have several ISAs already.Remember the saying: if it looks too good to be true it almost certainly is.0 -
I FOUND AN ISA PAYING OVER 70% APR. [and MSE seem to have missed this one, you only show the 1.6% without working out the APR by including the £10 a month bonus]
With HSBC 'Save Together ISA'; each month that I pay in £25, HSBC add a further £10, so after 12 months I pay in £300 + £120 paid in by HSBC. They also add their standard ISA interest of 1.6% to the £25 a month, making a total return of £422.21 after 12 months.
I MAKE THAT AN APR of 72.5% !!!
It has restrictions; only one account per customer, and its only for one year. But a quick calculation - I would need to pay in not £25 a month, but £1,400 a month to get £122 interest from the best 1year ISA [but that would take me over the ISA limit]
I was offered this ISA when HSBC switched me to an 'Advance' current account which is free, if I use the account for income and direct debits. [I suspect this ISA is a sweetener to win back customers fleeing to Santander123]0 -
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I've just tried to open a SBIUK 1000 day Cash ISA online and it came back with an unable to complete your application online after I entered all the requested info (I've also received 3 identical emails saying the same thing). It seems to be the best deal at the moment paying 2.3% and I want to transfer an existing Cash ISA to it.
It appears that you need an existing SBIUK account to be able to open the Cash ISA and that if you want the interest paid annually you must have an account with them that they pay the interest into. If this happens, it seems to me that you've lost the tax free status of that interest as it's no longer in the ISA. Normally any interest is added to the ISA account. Apparently you don't have to have another SBIUK account if the interest is paid at maturity but see below.
I've downloaded and printed the forms to do a postal application but again these say that you must also open a SBIUK savings or current account before they will open the Cash ISA. I don't mind opening a savings account and putting £500.00 into it to satisfy the other account requirement as other banks only give the best rates if you're an existing customer.
Anyone successfully opened a SBIUH 1000 day Cash ISA and transferred an existing ISA into it?
Tony.0
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