Cash ISA rates

[Stay in Bed Instead]

Following the base rate reduction Nationwide are reducing my immediate access ISA rate from 1.00% pa to 0.05% pa.

Any alternative suggestions please?

[deggles]

You should still be able to get ~1% with instant access. I usually check MSE for the best rates: https://www.moneysavingexpert.com/savings/best-cas...

I'm currently with Virgin Money, no complaints.
https://uk.virginmoney.com/savings/products/double...

[Stay in Bed Instead]

I would guess they are the current rates, much like Nationwide current rate is 1.00%, but they will be reducing significantly any time soon.

[deggles]

Stay in Bed Instead said:

I would guess they are the current rates, much like Nationwide current rate is 1.00%, but they will be reducing significantly any time soon.

True, most instant access products are variable rate and a cut soon is probably inevitable. Guaranteed rates seem to need at least a 1-year fixed term.

[ReallyReallyGood]

Marcus are still offering 1.2% instant access. Not in an ISA but still pays more than most cash ISAa after tax.

[Thin White Duke]

Direct Isa with NS&I currently paying 0.90%.

[anonymous-user]

My hobby horse,

"Cash" is a waste of the generous ISA tax benefits - which are zero income tax and zero capital gains tax.

What you want in an ISA is "tax free compound growth" and the best way to get that is from the stock market.

This year every taxpayer gets up to £1,000 p.a. of tax free interest (£500 for 40% taxpayers). So with interest rates now around 1% a basic rate taxpayer can have £100,000 of savings tax free without the need to even think about using an ISA. And anyone with hefty cash savings like that should IMO be considering the stock market in any event.

[2 GKC]

Unless you’re only investing for the short term in which case that’s nonsense

[anonymous-user]

Just because something isn’t relevant to a very specific scenario that wasn’t posed prior to the advice being given hardly makes it nonsense. It’s an excellent point and I for one am grateful for it.

[2 GKC]

OP asked for instant cash ISA rates. Stock market is hardly relevant to that, but I’m glad you were grateful for it

[anonymous-user]

But his point about 1% in a cash ISA vs £1000 tax free interest for most people thereby opening up other cash savings options such as Marcus at 1.2% and as a result saving your finite isa allowance for more efficient investments is entirely relevant and useful.

[dreamcracker]

Premium bonds are staying at 1.4% if you don't already have an account.

[595Heaven]

dreamcracker said:

Premium bonds are staying at 1.4% if you don't already have an account.

I moved most of the cash from my ISA into Premium bonds this morning. New bonds will be eligible for June draw, and you never know...

[Stay in Bed Instead]

dreamcracker said:

Premium bonds are staying at 1.4% if you don't already have an account.

Oh, that's a good idea.

No guarantee of any win of course, but then 0.05% is not much to lose.

[oyster]

rockin said:

My hobby horse,

"Cash" is a waste of the generous ISA tax benefits - which are zero income tax and zero capital gains tax.

What you want in an ISA is "tax free compound growth" and the best way to get that is from the stock market.

This year every taxpayer gets up to £1,000 p.a. of tax free interest (£500 for 40% taxpayers). So with interest rates now around 1% a basic rate taxpayer can have £100,000 of savings tax free without the need to even think about using an ISA. And anyone with hefty cash savings like that should IMO be considering the stock market in any event.

If you’re suggesting stock market involvement then I presume you’re assuming a longer term investment?

In which case, current interest rates and tax treatment of savings interest are lower relevance, especially given the ISA wrapper is for life.