Same Old Question

[cupotee2]

This is a question that pops up every year about this time with Isa's about to mature.

So....Old Mr Cupatee has a smallish [10.000] ISA to mature very soon.

Any ideas where to move this too?

Ta ever so.....

[Gizmonster]

Interest rates are pants at the mo, but without doubt, one of the best on offer at the mo is the Coventry - fixed 2.25% until Nov 2018.
It might seem a bit daunting committing for such a long period, as interest rates may rise soon (ish??), but if you want to close it early, the penalty is only 120 days interest, still making it highly competitive with everything else on offer.
The only downside is, it doesn't allow transfers in, but if you know you're not going to use up your £15k ISA allowance for the current tax year, you could simply withdraw the ISA and open up a new ISA with the money withdrawn from the old ISA ..... hope this all makes sense :)

More info here:
http://www.moneysavingexpert.com/savings/best-cash-isa

Scroll down to, "Top fixed-rate cash ISAs - even if you need access" (about half way down the page).

[VHG]

Some bank current accounts are paying better interest that many ISAs

I have a Santander 123 Current Account paying 3% up to £20,000

http://www.santander.co.uk/uk/current-accounts/123-current-account

I also have a Flex Direct Nationwide current account paying 5% up to £2,500

http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

I pay nothing to have either of these accounts, they are both free.

[Sipowicz]

According to the blurb on the 123 account it's supposed to cost £2 a month, I've had the account for over 2 years, never been charged once!

[New Judge]

I have a 123 account and the fee is charged every month.

to qualify for the interest payments (and the "cashback" on some household bills paid by Direct Debit) you have to fund the account with a minimum of £500 a month and set up at least two direct debits. The funding bit is a bit loose because you can draw out £500 and immediately pay it back in (the computer obviously is not fussy about where it came from). So you could set up a standing order to another account that you run on the 1st of the month and a standing order from that account back to your 123 on the second of the month.

[whiskeryron]

//So....Old Mr Cupatee has a smallish [10.000] ISA to mature very soon.

Any ideas where to move this too? // My bank account would be very nice.

[Garador]

Santander offering 2.4% nett, with instant access, seems a no brainier to me, particularly when you can possibly get 2.6% on an ISA tied up for two years.

[Sipowicz]

New Judge, I wonder why I haven't been charged? I don't think I'll ask them!

[New Judge]

I won't tell anybody, Sipowicz !

The suggestions to move the cash to a non-Isa account make sense in some respects (especially with ISA interest rates so miserly). But one thing of which you must be aware is that once the cash is shifted out of its ISA protection it can never be put back.

[Sipowicz]

Some useful information her;
http://www.theanswerbank.co.uk/Business-and-Finance/Personal-Finance/Question1403595.html

[Gizmonster]

Quite right NJ, but bear in mind that we're only talking about £10k here and the personal allowance is now £15k, so if need be, it can all be put back into an ISA all at once ....