Best ISA rate? skellington

#1
It maybe an obvious question, but doing some searching brings up new rates that say 'they are the best"! so just wanted to ask here, while I still have a month to open one!



So if i invested the maximum £15,240 for 2016/2017, where would be a good rate at this 11th hour? I probably could lock this away for a little while (2-5 years?)



The best ones I have seen so far are :



Blackmore Fixed Rate Bond 9.90% (this maybe 5 years or more at that rate?) Non ISA?



Ipswich Building Society Fixed Rate ISA - 2 year term 2%



Obviously I think I'm in the right place if anyone has any good recommendations?

Thank you in advance

#2
The Blackmore one carries risk of losing 100% of your investment. There is no point "earning" 9.9% for a few months and then you never see any more interest or any of your capital back because they made poor investments with the money they borrowed from greedy investors such as yourself.



The rate from Ipswich is fine (i.e. a genuine savings product with FSCS deposit protection, unlike the Blackmore investment) if you don't mind waiting 2 years for the money.



On £15k, 2% is only about £300 a year. If you are a high rate taxpayer your personal savings interest allowance allows you to earn £500 a year of total interest before paying tax and if you're a basic rate taxpayer you can earn £1000. Obviously £300 is lower than these amounts so if you don't have lots of other cash interest income in the year to come you may not need to pay tax anyway. So if you can find (non ISA) rates higher than 2%, it might be better to use them instead. For example on a 2-year fix, Atom Bank offer 2.2%.



There are lots of better rates on small amounts, for example a Nationwide current account can pay 5% on £2.5k, TSB and Lloyds pay 3% on £1500 or 2% on £5k with some freebies or bonuses etc, and various banks have "regular saver" products which would allow you to feed in the rest of the £15k over the course of a year while earning 3% or 5% on deposited funds.



The £15k allowance is a "use it or lose it" annual allowance, but in 6 April you'll get another £20k annual allowance and the same every April thereafter. If rates are better outside the ISA (especially if you have spare savings interest allowance for zero tax on your taxable interest income) then it may pay you more to not actually use your ISA allowance this year.

#3
Thank you for a detailed answer, and one which I'll need to read again a few times. I am a low earner so pay little or no tax due to earnings.. However I have these savings which I want to invest so I am just looking for the best product and advice before the 5th April deadline (if that relevant for the product I am needing)

#4



The best ones I have seen so far are :



Blackmore Fixed Rate Bond 9.90% (this maybe 5 years or more at that rate?) Non ISA?



Ipswich Building Society Fixed Rate ISA - 2 year term 2%
Originally posted by skellington


Blackmore is a potentially high-risk investment - not comparable to an ISA at all.



And, unless I'm missing something, Ipswich BS don't offer a 2% ISA at present (as far as I can tell). Indeed I'm not sure anyone offers a Cash ISA at 2% or more except for help-to-buy ISAs. Unless I'm missing something...



PS the best cash ISA rates are listed on this thread http://forums.moneysavingexpert.com/showthread.php?t=401374 Read the top post (which is regularly revised) and the latest posts at the end for current info. Beware anything in the middle as most is out of date.

#5



It maybe an obvious question, but doing some searching brings up new rates that say 'they are the best"! so just wanted to ask here, while I still have a month to open one!



So if i invested the maximum £15,240 for 2016/2017, where would be a good rate at this 11th hour? I probably could lock this away for a little while (2-5 years?)



The best ones I have seen so far are :



Blackmore Fixed Rate Bond 9.90% (this maybe 5 years or more at that rate?) Non ISA?



Ipswich Building Society Fixed Rate ISA - 2 year term 2%



Obviously I think I'm in the right place if anyone has any good recommendations?

Thank you in advance
Originally posted by skellington


As others have said avoid Blackmore product and anything else promising similar returns!



As you are a low earner paying little or no tax, forget about cash ISAs for now. Make use of decent interest rates offered on some current and regular saver accounts.



Have a read here



http://www.moneysavingexpert.com/savings/which-saving-account

#7



I am a low earner so pay little or no tax due to earnings.. However I have these savings which I want to invest ...
Originally posted by skellington


Since you are a low earner, you can also have up to £6000 interest before paying tax on it: £1000 the standard PSA, and up to £5000 Starting Rate for Savings (reduced by the amount by which your earnings exceed your Personal Allowance)

see Gov.UK here.

So you don't need to worry about sheltering your savings from tax, they're already sheltered (unless they are a LOT); just look for the best returns, mostly current accounts and Regular Savers at the moment.

#8
Thank you!



Yes so they are sheltered from Tax already - I was thinking of investing around 16,000 maybe for a couple of years to get the best possible return, but maybe there is a better high street interest account that i should be looking at first?



Thanks

#10



Thank you!



Yes so they are sheltered from Tax already - I was thinking of investing around 16,000 maybe for a couple of years to get the best possible return, but maybe there is a better high street interest account that i should be looking at first?



Thanks
Originally posted by skellington




: did you read the responses ??? Yes there are better high street and others you should be looking at, get your act in gear right now and you could put it in Atom bank at 2% (before midnight) for example.



FWIW the word "invest" usually relates here to shares and funds and the like, where there is a risk of lossing some money as well as gain it. What you seemingly want to do is save (which also has a risk of losing money through inflation but not as quickly as with shares. But you'll never get the big gains either )



The only investment mentioned would be the risky bond you mentioned (steer clear if that) but you don't seem to be cut out for investments

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