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Portman 7.5% v Abbey Postal 5.35%
loobs40
Posts: 1,233 Forumite
Apologies for this question but I don't know how to do the calculations.
I have £3000 in my pocket (well in a savings account actually). I can either put it straight into my Abbey Postal ISA for 05/06 or I can open a Portman 7.5% by putting £250 into it each month as per its requirements.
Assuming I will be earning net interest on the £3000 minus the £250 each month throughout the year (say I keep it in my Alliance % leicester online saver), Will I earn more interest overall by investing in the Portman cash ISA?
I have £3000 in my pocket (well in a savings account actually). I can either put it straight into my Abbey Postal ISA for 05/06 or I can open a Portman 7.5% by putting £250 into it each month as per its requirements.
Assuming I will be earning net interest on the £3000 minus the £250 each month throughout the year (say I keep it in my Alliance % leicester online saver), Will I earn more interest overall by investing in the Portman cash ISA?
0
Comments
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I assume that you pay 20% on usual savings interest.
If you put initially £250 to Portman ISA and £2750 to usual 5% saving account and then transfer £250 every month you will earn £120 in Portman and £79 (after tax).
In Abbey you will earn £160.
However, Portman have £30 transfer penalty. Read posts #22 and #40 in this THREAD.
120+79-30=169>160
You decide whether the fuss is worth £9.0 -
Thanks for that!0
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