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    • pinklady21
    • By pinklady21 9th Apr 18, 3:46 PM
    • 531Posts
    • 357Thanks
    pinklady21
    Best Cash ISA?
    • #1
    • 9th Apr 18, 3:46 PM
    Best Cash ISA? 9th Apr 18 at 3:46 PM
    Looking for a decent home for ISA cash for 2018/19 tax year.
    Already have a Nationwide Loyalty ISA earning 1.4%. Have transferred in previous year's Cash ISA's and now just on the 85k savings limit.
    Cash likely to be needed this year for a house deposit, so don't want to tie in to a fixed period.
    I have an N Sand I ISA, but the rate is lower at 1%.
    Not paid anything into a cash ISA yet this tax year.
    I have about 500 spare cash a month that I need to stash somewhere until the ideal house comes up.
    Higher rate tax payer, and already maxing out on regular savers.

    The dilemma is should I just keep topping up the Nationwide ISA even though it is now over the 85k limit, or open another one with as high a rate as I can find (looking at the Best Buys, probably Shawcross Bank at 1.25% and use that for this year's contributions instead?
    Thank you!
Page 1
    • Paul_DNAP
    • By Paul_DNAP 9th Apr 18, 4:31 PM
    • 54 Posts
    • 65 Thanks
    Paul_DNAP
    • #2
    • 9th Apr 18, 4:31 PM
    • #2
    • 9th Apr 18, 4:31 PM
    You're going to struggle to get a better rate for an instant (ish) access cash ISA.

    The 85k isn't a savings limit, it's the compensation ceiling if your bank disappears and takes all your money with it. So what's the odds on the Nationwide disappearing without a trace between now and when you'll need your house deposit? I'd say very slim indeed.

    And if it did come to a situation where all the banks collapse and we're all calming on the FSCS to find our money, then I think we will be in a desperate state all round and you'll struggle to find anyone willing to lend you a mortgage to buy your house anyway. We'd be lucky to find bread to eat.

    I'd put it in the Nationwide, but if you are nervy then there isn't a massive difference between 1.25% and 1.4% anyway.
    • pinklady21
    • By pinklady21 9th Apr 18, 4:50 PM
    • 531 Posts
    • 357 Thanks
    pinklady21
    • #3
    • 9th Apr 18, 4:50 PM
    • #3
    • 9th Apr 18, 4:50 PM
    Thanks - yes of course, I meant the savings compensation limit!
    I just wondered if anyone had any better ideas that had not occurred to me on this one.
    • jimjames
    • By jimjames 9th Apr 18, 5:43 PM
    • 12,553 Posts
    • 11,187 Thanks
    jimjames
    • #4
    • 9th Apr 18, 5:43 PM
    • #4
    • 9th Apr 18, 5:43 PM
    If it's cash for house deposit then ISA is irrelevant just go for the best rate. Not sure of others but Tesco is 1.3% for savings account
    Remember the saying: if it looks too good to be true it almost certainly is.
    • pinklady21
    • By pinklady21 9th Apr 18, 6:01 PM
    • 531 Posts
    • 357 Thanks
    pinklady21
    • #5
    • 9th Apr 18, 6:01 PM
    • #5
    • 9th Apr 18, 6:01 PM
    Yup - but we have been looking for a new home for 2 years already, and finding it really difficult to find the right place! No idea how long we might be in limbo, and would like the cash to remain liquid in the meantime, just in case the right thing comes up and we have to move on it quickly.
    I am already probably pushing the 500 higher rate taxpayer savings allowance with other taxable savings, so using ISA to try and minimise what is due.
    I could dump any excess cash into my 1.44% Birmingham Midshires, but at the cost of it being taxable. Heh ho.
    • Zorillo
    • By Zorillo 9th Apr 18, 7:27 PM
    • 101 Posts
    • 59 Thanks
    Zorillo
    • #6
    • 9th Apr 18, 7:27 PM
    • #6
    • 9th Apr 18, 7:27 PM
    I wouldn't be too concerned that Nationwide was likely to go bust in the immediate future, but then I might feel differently if I had 85k with them.
    • Dazed and confused
    • By Dazed and confused 9th Apr 18, 8:45 PM
    • 2,485 Posts
    • 1,186 Thanks
    Dazed and confused
    • #7
    • 9th Apr 18, 8:45 PM
    • #7
    • 9th Apr 18, 8:45 PM
    I am already probably pushing the 500 higher rate taxpayer savings allowance with other taxable savings, so using ISA to try and minimise what is due.
    I could dump any excess cash into my 1.44% Birmingham Midshires, but at the cost of it being taxable. Heh ho.


    Slightly off topic but the 500 isn't really an "allowance" so for example if you are having to pay the High Income Child Benefit Charge or have income in excess of 100k the 500 could result in extra tax being payable even though the interest itself may be due to be taxed at 0% (the Personal Savings Allowance tax rate).
    • colsten
    • By colsten 10th Apr 18, 4:21 PM
    • 8,993 Posts
    • 7,745 Thanks
    colsten
    • #8
    • 10th Apr 18, 4:21 PM
    • #8
    • 10th Apr 18, 4:21 PM
    Ignore the few pennies of interest you could squeeze out and try your luck with Premium Bonds? Any "winnings" would be tax free.
    • pinklady21
    • By pinklady21 10th Apr 18, 6:37 PM
    • 531 Posts
    • 357 Thanks
    pinklady21
    • #9
    • 10th Apr 18, 6:37 PM
    • #9
    • 10th Apr 18, 6:37 PM
    Thanks - I already have Premium Bonds maxed out at 50k, so does OH. It is quite a large house deposit..... just wish I could find something to spend it on!
    • tenchy
    • By tenchy 10th Apr 18, 6:48 PM
    • 360 Posts
    • 109 Thanks
    tenchy
    Nationwide Loyalty ISA seems to be the best. Earlier, I was about to transfer my Virgin Money ISA to it but I noticed it pays interest annually, so I cancelled the application to look further at it. Would annual interest put anyone off? I don't see a problem with it ...
    • SallySunshine
    • By SallySunshine 11th Apr 18, 4:04 PM
    • 662 Posts
    • 235 Thanks
    SallySunshine
    It looks like the Shawbrook Easy Access would be your best bet, after reading your post.

    I thought the rates were bad enough last year, but now lots of institutes aren't even offering any type of ISA's at all!
    • ValiantSon
    • By ValiantSon 11th Apr 18, 5:16 PM
    • 1,621 Posts
    • 1,403 Thanks
    ValiantSon
    Nationwide Loyalty ISA seems to be the best. Earlier, I was about to transfer my Virgin Money ISA to it but I noticed it pays interest annually, so I cancelled the application to look further at it. Would annual interest put anyone off? I don't see a problem with it ...
    Originally posted by tenchy
    Why would interest being paid annually be a problem?

    Should you close the ISA before the annual payment then you would simply receive the interest due at that point.
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