# Banking News. Santander maturing ISA's



## 113016 (Jun 5, 2008)

A little warning.
If you have any Santander ISA about to mature, watch out as they put maturing ISA's into an Easy ISA account where the interest rate is pathetic! Starts at 0.10 %
Luckily, we noticed in time!
It is possible to do an online immediate transfer into a 123 Direct ISA and get a much better rate, while deciding what to do.

http://www.santander.co.uk/uk/isas/easy-isa
http://www.santander.co.uk/uk/isas/direct-isa-saver


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## nicholsong (May 26, 2009)

These cash ISAs have atrocious rates of interest.

Just over a year ago I bought bonds in Paragon which is a property investment company. The bonds pay 6.125% inside my ISA. They are redeemable in 2022, but since the are tradeable on the Stock Exchange one can sell them at any time. I would not want to be exposed to a bond at that interest rate, which supposes some risk premium, without the ability to sell.

They are currently trading at a 6% premium to the £1.00 I paid on issue, which shows confidence in them. I could get out now having received the first year 6.125% and make an additional profit of 6% - will I? Nah thanks, I will stick with them. Were they not in an ISA the income would be nudging me into higher rate tax, so for me the income is a good deal.

Geoff


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