22 Dec 2024

The great ISA split

There was a time when you didn’t have to struggle with the concept of cash ISAs. They are tax-free and all you need to look for is the best rate. However, new parameters are being quietly set which mean that in future we will all need to delve deeper than just rate alone.

Sylvia Waycot, spokesperson for Moneyfacts.co.uk, said:

“This ISA season Moneyfacts has seen a growing trend of ISAs launched which refuse to accept transfers in.

“Many people have ISAs going back several years and they will naturally want to ensure that the whole of their ISA pot gets the best return.

“That will not be as easy under this new trend as many of the ISAs refusing transfers in are best buys. Taking one of these accounts means splitting your ISA pot into at least two accounts, potentially with two providers paying two different rates.

“Providers say they can only offer headline rates if they set a limit on how much money they can accept and that limit will be reached too quickly and by too few people if they open the doors to transfers in.

“Top five tips for getting the best from ISAs are:

Research the best rate and check that you are happy with how the account operates.
Record all details of bonuses and ‘go to’ rates; this is especially important if you have to manage new and existing ISA accounts.
Before transferring ISAs check there are no penalty notice periods that need to be avoided.
Remember that ISA providers should transfer your account within 15 days of application.
ISAs for the forthcoming tax year start to be launched in February each year, so set a diary note to start your hunt at the same time.”

Top ISAs
Company	Account	Notice	Gross £5.64K	Introductory Bonus	Transfers In	Transfers Out Penalty
Cheshire BS	Direct Cash ISA (Issue 2)	None	3.50%	Rate includes 2.50% bonus until 31.10.2013	No	N/A
Santander	Direct ISA Issue 9	Instant	3.30%	Rate includes 2.80% bonus for 12 months	Yes	N/A
Coventry BS	60 Day Notice ISA	60 Day	3.25%	Rate includes 0.50% bonus for 12 months	No	60 day notice or loss.
Source: Moneyfacts 1 May 2012

Top ISAs that won't allow transfers in
Company	Account	Notice	Gross £5.64K	Introductory Bonus	Transfers In	Transfers Out Penalty
Cheshire BS	Direct Cash ISA (Issue 2)	None	3.50%	Rate includes 2.50% bonus until 31.10.2013	No	N/A
Coventry BS	60 Day Notice ISA	60 Day	3.25%	Rate includes 0.50% bonus for 12 months	No	60 day notice or loss.
Skipton BS	Bonus Cash ISA	Instant	3.10%	Rate includes 1.10% bonus for 12 months	No	N/A
Source: Moneyfacts 1 May 2012

Top ISAs that allow transfers in
Company	Account	Notice	Gross £5.64K	Introductory Bonus	Transfers In	Transfers Out Penalty
Santander	Direct ISA Issue 9	Instant	3.30%	Rate includes 2.80% bonus for 12 months	Yes	N/A
Aldermore	60 Day Notice Cash ISA	60 Day	3.15%	-	Yes	60 day notice or loss.
Principality BS	e-ISA Issue 3	None	3.10%	Rate includes 1.30% bonus for 12 months	Yes	N/A
Source: Moneyfacts 1 May 2012

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349