Best savings account?

200sols said:
Probably only want to keep the financially illiterate people who will keep their cash with them as they lower the rate well below what it should be.
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Well maybe but still.. I dunno how much of the ISA market is people transferring ISAs from elsewhere or investing fresh money into ISA wrappers... It doesn't make any sense from an objective view to prevent a portion of potential investment for them to profit on?

Money is money at the end of the day, and the more people who put money into chip ISAs, be they new or old customers... The bigger the total pool of cash chip have to invest and make money on.

Very odd.

And even people who switch /transfer between ISAs to get better rates or whatever... There's alway healthy competition with ISA providers...

OK it might be that chip are offering the best headline interest rate in the future... But you can guarantee there will be 3 or 4 other providers with interest almost as good, with better terms, such as flexible, no punishment for withdrawals up to 3x per year or other little perks to the overall package.

It doesn't make any commercial sense to have a rule like this just to be spiteful?
 
FBi7 said:
Could someone better in the know than I am, please do me a quick understanding/maths check? I may have had an epiphany/d'oh moment :D

I'm a higher rate tax payer (42% in Scotland). Figures below chosen for simplicity.

If I put £100 in a savings account (non-ISA) for a year at 5%, then after a year I'd have £105.

But I'd pay tax on that £5, meaning in reality I'd have an additional £2.90/real interest rate would be 2.9%, not 5%.

So, I'd be better off having an ISA (never really bothered with them in the past) at say 4.5% where I'd have £104.50 at the end of the year, instead of £102.90.

I'm never in a million years going to be able to save anywhere near £20k a year.

Does that seem about right?

Cheers,

FB..
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In England us higher rates get 500 gbp per year interest untaxed.

Which I make sure I keep under.
A regular saver and fixed rate bond take me to 400 interest a year.

Rest rest goes in isa.

Assume Scotland have same 500 free?
 
MatsyLR said:
I could understand maybe one cash ISA in a tax year then it resets in April for example but to completely block is bizarre. There are people saying it's a limitation of some kind on mse just strange most others don't have the rule.

Should be very clear when signing up though
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Chase bank do the same, if you close an account with them they won't let you open another account in the future.
 
Eddie99 said:
Chase bank do the same, if you close an account with them they won't let you open another account in the future.
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I wonder what the commercial reasoning for that is, as it seems a non productive if you want people to 'put money through your books'.

I guess I'm not understanding something here as it doesn't make any sense to deny any paying customer future business?
 
mattyfez said:
I wonder what the commercial reasoning for that is, as it seems a non productive if you want people to 'put money through your books'.

I guess I'm not understanding something here as it doesn't make any sense to deny any paying customer future business?
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I think the idea is that it's supposed to be a deterrent to stop people leaving in the first place, and it might be a lot of admin work if a customer keeps leaving and joining.
 
Eddie99 said:
I think the idea is that it's supposed to be a deterrent to stop people leaving in the first place, and it might be a lot of admin work if a customer keeps leaving and joining.
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I get that... But if you go onto MSE best ISAs.. Chip haven't been the most competitive for quite a while.

Maybe a sign of things to come if other ISA providers follow suit?

Edit.. And I don't buy it's any extra admin as a thing.. It's only an automated computer process.
 
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Zefan said:
@FBi7 Worth noting that the position we're in where cash isas make as much as they do vs standard interest bearing accounts is quite odd. This, combined with decreasing interest tax caps and the fact that you can build your isa bank up and eventually turn any cash isa in to an S&S one for tax free growing stocks and shares is a no brainier for me at the moment.

:edit: but then again so is the mad tax relief on pensions and the halfway house of LISAs. Too many opportunities, making the decision on which to place money in to can be super tricky.
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Hey @Zefan apologies for only replying just now. I never saw, nor was notified, that you'd tagged me in a reply. Appreciate you posting - quite informative. Thanks. (Edit 2: I'm too old for a LISA ;) )
413x said:
In England us higher rates get 500 gbp per year interest untaxed.

Which I make sure I keep under.
A regular saver and fixed rate bond take me to 400 interest a year.

Rest rest goes in isa.

Assume Scotland have same 500 free?
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@413x likewise, thanks for posting. I didn't know about that. Just done a bit of Googling, and yes, according to the BoS, the £500 thing is also a thing up here. Cheers.

Edit: is there some website or spreadsheet available where you can input your particulars to determine what's best to do - ISA v Non-ISA?
 
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FBi7 said:
Hey @Zefan apologies for only replying just now. I never saw, nor was notified, that you'd tagged me in a reply. Appreciate you posting - quite informative. Thanks. (Edit 2: I'm too old for a LISA ;) )

@413x likewise, thanks for posting. I didn't know about that. Just done a bit of Googling, and yes, according to the BoS, the £500 thing is also a thing up here. Cheers.

Edit: is there some website or spreadsheet available where you can input your particulars to determine what's best to do - ISA v Non-ISA?
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I use a regular saver as its 6.25 for my regular saving (about 180 interest per year)
I have a legacy 5pc bond that matures in 13 months (180 interest per year)

My isa is 5.1, yes I regret my bond!

Because my regular saver is higher in interest than my isa and under the 500 yearly interest I use it every year
 
413x said:
I use a regular saver as its 6.25 for my regular saving (about 180 interest per year)
I have a legacy 5pc bond that matures in 13 months (180 interest per year)

My isa is 5.1, yes I regret my bond!

Because my regular saver is higher in interest than my isa and under the 500 yearly interest I use it every year
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0.1% isn't going to matter that much tbh, wouldn't let it bother me.

My reg saver (8%) with Nationwide expires this month, I need to look at what new options I have but think it's a lot less.

I don't like hugely time gated instruments, about a year is the max I want to let something sit without options, but longer terms may yield better rewards.
 
413x said:
Because my regular saver is higher in interest than my isa and under the 500 yearly interest I use it every year
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You've just confirmed what I was thinking. We both have a 1 year Nationwide saver at 6.5%. Max deposit is £200/month. Nationwide's own figures say that after 12 x £200 deposits, we'll have £2484.50 each.

Still plenty of headroom for sticking with non-ISA accounts for the time being. But I'll certainly keep a closer eye on interest earned in other accounts.
 
HungryHippos said:
0.1% isn't going to matter that much tbh, wouldn't let it bother me.

My reg saver (8%) with Nationwide expires this month, I need to look at what new options I have but think it's a lot less.

I don't like hugely time gated instruments, about a year is the max I want to let something sit without options, but longer terms may yield better rewards.
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Its more that it's not flexible. So the moneys been stuck in it for 2 years now.
 
FBi7 said:
You've just confirmed what I was thinking. We both have a 1 year Nationwide saver at 6.5%. Max deposit is £200/month. Nationwide's own figures say that after 12 x £200 deposits, we'll have £2484.50 each.

Still plenty of headroom for sticking with non-ISA accounts for the time being. But I'll certainly keep a closer eye on interest earned in other accounts.
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Yeah I use lloyds as its 6.25 @400ppm
That funds part of my Holiday spending!
 
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