The Lemon Fool

Nationwide have just reduced their ISA rate to .10%. My wife has an ISA with them so it looks like it will have to be moved.

Ford Money seem to be offering 1.35% on a 2 year fix which seems decent in the current situation. I have tried to find out if they share their FSCS with any other bank but so far I can't find any information.

Can anyone please throw any light on this? We've got money with other banks so I don't want to exceed the £85,000 limit.

If any posters know of a better rate please let me know.

sg31 wrote:Nationwide have just reduced their ISA rate to .10%. My wife has an ISA with them so it looks like it will have to be moved.

Ford Money seem to be offering 1.35% on a 2 year fix which seems decent in the current situation. I have tried to find out if they share their FSCS with any other bank but so far I can't find any information.

Can anyone please throw any light on this? We've got money with other banks so I don't want to exceed the £85,000 limit.

If any posters know of a better rate please let me know.

I wouldn't think so as I can't imagine they share any financial relationship with any other banking group, instead being ultimately part of Ford Motor Co.

If you want a 'real' bank, The Post Office have the same 2 year fix at 1.35%, or 1.3% for 1 year. We've just opened an account with no problems. The account is held with the Bank of Ireland, so it depends if you exceed the £85k limit with them.

sg31 wrote:Ford Money seem to be offering 1.35% on a 2 year fix which seems decent in the current situation.

Not really, considering you can get 1.6% for 1 year fixed and 1.65% for 2 years.
https://www.moneysavingexpert.com/savin ... xedsavings

sg31 wrote:I have tried to find out if they share their FSCS with any other bank but so far I can't find any information.

https://www.moneysavingexpert.com/savin ... ings/#tool says they don't.

mc2fool wrote:

sg31 wrote:Ford Money seem to be offering 1.35% on a 2 year fix which seems decent in the current situation.

Not really, considering you can get 1.6% for 1 year fixed and 1.65% for 2 years.
https://www.moneysavingexpert.com/savin ... xedsavings

They're not ISAs though.

It might make sense to move money out of an ISA if there's no danger of the interest being taxed, but it's something you have to think about.

Scott.

swill453 wrote:

mc2fool wrote: Not really, considering you can get 1.6% for 1 year fixed and 1.65% for 2 years.
https://www.moneysavingexpert.com/savin ... xedsavings

They're not ISAs though.

Good point Looks like Shawbrook at 1.48% for 2 year fixed would be the best fit for the OP. https://www.moneysavingexpert.com/savin ... -cash-isa/

(Why are ISA rates so much less than non-ISA? Esp. now that most people won't pay any tax on their interest anyway)

mc2fool wrote:
(Why are ISA rates so much less than non-ISA? Esp. now that most people won't pay any tax on their interest anyway)

Because they are provided by banks, and the cost to the bank of providing them is higher.

dealtn wrote:

mc2fool wrote: (Why are ISA rates so much less than non-ISA? Esp. now that most people won't pay any tax on their interest anyway)

Because they are provided by banks, and the cost to the bank of providing them is higher.

Then why doesn't that also apply to instant access accounts too? Instant access ISAs offer (marginally) better rates than instant access non-ISA accounts.

https://www.moneysavingexpert.com/savin ... easyaccess
https://www.moneysavingexpert.com/savin ... a/#topeasy

Even from the same bank:
https://www.shawbrook.co.uk/direct/savi ... -accounts/ Easy Access non ISA 1.15%
https://www.shawbrook.co.uk/direct/savi ... -accounts/ Easy Access ISA 1.25%

mc2fool wrote:

dealtn wrote: Because they are provided by banks, and the cost to the bank of providing them is higher.

Then why doesn't that also apply to instant access accounts too? Instant access ISAs offer (marginally) better rates than instant access non-ISA accounts.

Because instant access ISAs are "stickier" than instant access non-ISA accounts. In effect they act as longer term money than ordinary savings accounts. They are rewarded as such, and also have the benefit, to the bank, of being cheaper to administer as a result.

Thank you for the replies. I used Money Supermarket as a quick reference tool and they showed Ford Money as the top deal. I'll have a look at the other options. We are already up to the limit with Shawbrook but the others look promising.

I must admit I've lost touch with the market, there are a lot of names I don't recognise.

I usually do a review of our savings when I do our tax returns. That might well be next week if we get a few wet days