House Cash question

[ASB]

At last a serious reply. Amount of equity is towards the upper end of your quoted range. Premium bonds I'd not thought of.

I thought if you had a cash ISA you had to leave the cash in there for 5 years to shelter it from tax?

Is it the Building Socs that market 1 year bonds?

Loads of people will market cash bonds. B'Socs, Insurers etc. But you need to consider the depositors protection scheme and spread it around. Also ensure you don't have related institutions.

If you could be bothered you could open about 50 current accounts paying up to 8% on regular savings and shuffle them all around (since generally the rules are deposit 1k per month and get around 8% on the first 2.5k in it. That would be taking rate tart to the extreme though.

Some of the banks will also offer money market accounts which are generally libor linked in some way. Generally you can only find the rates by ringing 'em. HSBC might be worth a quick call. Problem of course is than the minimums are often > than the 35k protection level.

Managed cash funds do exist as well, but I would imagine fees will likely eat up all of any rate improvement.

[Gonzo]

I thought if you had a cash ISA you had to leave the cash in there for 5 years to shelter it from tax?

No, the only conditions that the ISA wrapper add to the rules of the underlying product is that there is a limit of £3,600 contributed per year (and a total of £7,200 into your both your cash and your stocks and shares ISA) and you have to be UK resident to contribute.

I think it is possible that some 5 year bonds may qualify for a cash ISA, but the 5 year term is a rule of the underlying product, not a rule of the ISA wrapper.

It is also possible that you are confusing them with TESSAs (which cash ISAs replaced some years ago).

[Lockhouse]

No, the only conditions that the ISA wrapper add to the rules of the underlying product is that there is a limit of £3,600 contributed per year (and a total of £7,200 into your both your cash and your stocks and shares ISA) and you have to be UK resident to contribute.

I think it is possible that some 5 year bonds may qualify for a cash ISA, but the 5 year term is a rule of the underlying product, not a rule of the ISA wrapper.

It is also possible that you are confusing them with TESSAs (which cash ISAs replaced some years ago).

I thank you sir