Often Iāve seen interest accumulate daily but only display as āearned this monthā. If withdrawn, your daily interest would decrease slowing down the accumulated interest - but the total interest accumulated over the total 365 days will be paid out. Hope that makes senseā¦
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So is there a consensus on how this isa pot works?
I opened mine and paid into it only in the last tax year, but Iām unable to open a new one now this tax year?
Just keep adding to it. You donāt need to open a new pot, it continues
Same as any other ISA as far as I can see. Pay money into no more than 1 ISA a year and only open a new one if you want to change provider for the current yearās deposits.
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Would be good if it showed you where you are in relation to this yearās limit
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Would be a nice addition, I wonder if you could fashion something with goals to make this work.
It would be even nicer if you could manually tell it how much youāve put into other isas. Otherwise, the figure is not very helpful.
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Well at least if they all tell you, you can add them up. Tracing the Monzo figure is currently tough.
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OK so the current UK inflation rate is 1.9%. Is there anywhere I can put my money where it isnāt going to be worth less year on year in real terms?
Totally agree with this - the reason I didnāt go for the Investec savings. Would also rather savings are with an ethical partner otherwise Iād rather stick with Coventry/Nationwide for now, which have better rates as well. However would also rather everything was in less accounts also.
So, can anyone confirm whether Iām right or not with this?
Between all ISAs accounts you can save up to Ā£20,000 per tax year.
Iāve opened a Lifetime cash ISA last summer and Iāll be placing there Ā£4000 to get the 25% for the 2019/20 tax year.
Am I eligible to place my remaining savings into the Monzo Flexible Cash ISA as well?
My plan is buying a property by September so the idea is withdrawing everything from the lifetime cash ISA and potentially some of my savings into the Monzo cash ISA as well.
Thanks
FSCS-Protected bank accounts
There are some current accounts and regular saver accounts which pay above 2% interest, but these limit the amount you can earn interest on
The best fixed term savings accounts pay around or above 2% interest
Other
There are a couple of Fintechs Iām aware of that pay up to 5% on money deposited in certain accounts with them (they donāt call it interest for regulatory reasons, but its basically interest). However, you have to jump through some hoops to earn this āinterestā with them and the money is not FSCS protected so you have to trust these providers are following proper safeguarding procedures to keep your money safe in the event they go bust. This āinterestā is basically coming from their marketing budgets to attract new users.
https://getchip.uk/ (their savings account - earn up to 5% interest)
https://www.dozens.com/ (their trust bonds - earn 5% interest)
Beyond that, you would probably need to look into investing the money (e.g. in Stocks & Shares or Peer-to-Peer lending). Investing over a long time period you would expect to earn significantly more than 2% per year, but its not guaranteed. Your money could go down, especially if you only invest for a short time period and donāt have time to let it recover from dips.
Yes, as long as you donāt have any other ISAs (Help to Buy, Stocks and Shares), you would have 16k of your allowance left for your cash ISA.
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Donāt forget the Halifax and Lloydās kids savers, which give you 2% on up to 5k each. You can also then use your kidsā Ā£100 tax free allowance (for money from parents) on top of your PSA. Also, the Halifax Kids Regular Saver.
Two quick comments.
- When going through to open an ISA, the app claims I can only āopen Savings Pots as cash ISAsā, even though I am able to access the non-ISA fixed savings pots. Needs tweaking even if it is just the addition of the word āflexibleā.
- I find the current method of displaying the interest on the fixed pots somewhat confusing. When selecting a six-month fixed pot, the app says the rate is ā1.36% interest on this term lengthā.
This reads as if the 1.36% is the total return over the six month term length, when itās actually just the standard annual rate (AER). I know many will be presume this to be the case, and so did I - but it was vague enough that I felt the need to do some maths to check anyway.
Perhaps some rewording to make it clear that this is the AER, or to make clear that the return is 0.678% over six months. (Iād see the first of these as preferable).
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Or even both
0.678% over 6 months which is equivalent to 1.36% AER
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Anyone just spotted what Coventry BS have done matching Marcus with the init rate?
Easy access and Flexible ISA 1.5% (Ā£1 min)
Blows Monzoās 1.14% (Ā£500 min) offer out of water, especially for those starting out with less than Ā£500 savings.
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I saw this had already gone up to 1.47%. Nice to see it now matches Marcus.
Withdrawals can take a while though with Coventry
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I agree it needs to say the interest you would get for 6 months and also an annualised rate. Not making this clear is a risk.
The current iOS Testflight version quotes the percentages as AER so it looks like this has been addressed.
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