cash ISAs worth it?

slinxy · 21 Mar 2009 at 11:43

Hi

I'm thinking of opening a cash ISA account with bank and just wondering if they worth it?

How much interest would I get in a year on £3600 on 0.5% AER?

Thanks

gumbald · 21 Mar 2009 at 11:45

0.5%!

Try looking a bit harder:

http://www.thisismoney.co.uk/saving...ticle.html?in_article_id=394169&in_page_id=50

helpimcrap · 21 Mar 2009 at 11:50

think mines around 1.5% and 3.2£ on £30000+.

i 'll let you know in 2 weeks how much interest i get lol.

Heliospherez · 21 Mar 2009 at 13:30

Mine was over 5% when I opened it.

It's now .5%.

No idea how much I'm getting this years as the rates have changed every month, and are calculated daily.

Not really much benfit in saving in an ISA now - unless you want to build up your Tax Free allowance for the future. A number of normal savings accounts will give better interest.

singist · 21 Mar 2009 at 13:57

You mean that you would still trust a bank with your money?

Brave man.

Adam · 21 Mar 2009 at 14:11

singist said:
You mean that you would still trust a bank with your money?

Brave man.

I can't tell if you are being sarcastic or not. Infact, I am hoping you are because that is a moronic comment.

FrostedNipple · 21 Mar 2009 at 14:15

my isa is/was at 2% last time i checked and i get a 1% bonus for being in the first 12 months of opening it

Scam · 21 Mar 2009 at 14:35

Barclays offer 3.61% on their Golden ISA and that's the best around at the moment. You cant transfer in, but i suspect that's not a problem for the OP.

Good site is: http://www.moneysavingexpert.com/

EDIT: At the OP if you have more than £3,600 you could put in an ISA then i suggest you get down the bank smartish and pay in the first £3,600 before the beginning of April. Then come April 6th (i think) you'll be able to put another £3,600 in.

Zaphan58 · 21 Mar 2009 at 15:02

I've got over 6K in an ISA and it's only getting a few quid interest a month now. Was over a tenner a month last year. There are better deals out there though.

helpimcrap · 21 Mar 2009 at 15:16

check the interestt rates at your bank. on my current account interest is 0.08% in an ISA it's a lot higher.

Treat it as normal saver though not an ISA as it's not worth it.

Thsharp01 · 21 Mar 2009 at 15:35

Scam said:
Barclays offer 3.61% on their Golden ISA and that's the best around at the moment. You cant transfer in, but i suspect that's not a problem for the OP.

Good site is: http://www.moneysavingexpert.com/

EDIT: At the OP if you have more than £3,600 you could put in an ISA then i suggest you get down the bank smartish and pay in the first £3,600 before the beginning of April. Then come April 6th (i think) you'll be able to put another £3,600 in.

I've got a natwest isa at the moment paying 1.1%

could i open a new isa, transfer my exisiting money in before April 6th and then save a further 3,600 come the new tax year?

Furton · 21 Mar 2009 at 15:51

That Barclays one doesn't accept transfers from current ISA's

singist · 21 Mar 2009 at 15:55

Adam said:
I can't tell if you are being sarcastic or not. Infact, I am hoping you are because that is a moronic comment.

Please explain why you feel justified in calling me moronic. :mad:

radderfire · 21 Mar 2009 at 16:01

slinxy said:
Hi
How much interest would I get in a year on £3600 on 0.5% AER?

My understanding is that currently savings rates are very low and therefore savings accounts have relatively low attraction. The rate you quote is a very low return, so if you weren't happy with that you would have to look at other classes of investment. Obviously this is easier said than done, but you have a low rate of return to beat.

Rgds

titchard · 21 Mar 2009 at 17:36

slinxy said:
Hi

I'm thinking of opening a cash ISA account with bank and just wondering if they worth it?

How much interest would I get in a year on £3600 on 0.5% AER?

Thanks

Half of 1% - and if you can't figure out 1%...

Rich

[TW]Fox · 21 Mar 2009 at 17:39

singist said:
Please explain why you feel justified in calling me moronic.

He didn't call you moronic, he said your comment was moronic.

Adam · 21 Mar 2009 at 19:32

singist said:
Please explain why you feel justified in calling me moronic.

I'm just genuinely shocked that someone would think that keeping money in the bank isn't safe. Do you really think your money is at risk or are you spreading fear unneccessarily?

Energize · 21 Mar 2009 at 19:35

Adam said:
I'm just genuinely shocked that someone would think that keeping money in the bank isn't safe. Do you really think your money is at risk or are you spreading fear unneccessarily?

Tbh after Icesave and Kaupthing Edge going bust and Northern Rock and Anglo irish being nationalised you can hardly blame people.

Investing might get you a much better return over the next 5 years, something with low charges like a ftse all share index tracker, combined with quidco's £85 cashback.

jellybeard999 · 21 Mar 2009 at 20:36

Don't forget, ISA is also tax free.

Gepetto · 21 Mar 2009 at 23:47

Energize said:
Tbh after Icesave and Kaupthing Edge going bust and Northern Rock and Anglo irish being nationalised you can hardly blame people.

Investing might get you a much better return over the next 5 years, something with low charges like a ftse all share index tracker, combined with quidco's £85 cashback.

Do you know anyone who has actually lost any money (from savings) lodged in any of those institutions? Investments, obviously, are a completely different kettle of fish.

With regards to your second comment, absolutely 100% right, although again, you should expect (in general) to get higher returns if you are prepared to invest over a longer period. The returns will probably be directly linked to risk, however.

Regarding the OP, 0.5% on an ISA is very low and there are much better deals out there. Have a look around. You should get 2.5%-3% no problem at all. Don't forget the base rate is only 0.5%.

Whilst the interest rates are low at the moment that will no doubt change, and you should keep an eye on any ISA you have and re-invest each year, as it is difficult to get excited about the returns on an ISA at the moment, especially if it is your first one, but, once you have invested in an ISA for 3-4 years and have a larger sum in it, the tax free benefits start to look more attractive.