Santander Direct ISA 1.6%

Options
john-306
john-306 Posts: 722 Forumite
Photogenic Name Dropper First Post First Anniversary
in ISAs & tax-free savings
I have a few fixed rate ISAs matured/maturing now, rates down to 0.5%, I would normally find another fixed rate ISA and transfer over by now, but due to a small inheritance coming my way hopefully next month, there is a chance to purchase a new house, I don't want to tie up any money just yet in case we do move soon ( obviously not guaranteed so would like to stick with ISAs to save building up into ISAs again if we don't move)
Looking at all easy access ISAs available seem to have some sort of clause, living within a distance of branch/had accounts with them recently etc.
Santander Direct ISA 1.6% seems to fit the bill if I'm reading it correctly, transfers in, free cash out, reasonable interest rate?
Anyone see a problem going with this ISA for possible short term, or maybe one I've missed?
Thanks for any input

Comments

  • AlwaysLearnin
    AlwaysLearnin Posts: 874 Forumite
    First Anniversary Name Dropper First Post Mortgage-free Glee!
    Options
    If you need easy access and transfer in then this is one of the better options. Kazzas thread includes some others that might suit:

    http://forums.moneysavingexpert.com/showthread.php?t=401374

    If you want the Santander one then be quick, as I've read that the rate will be dropping from Tuesday
  • innovate
    innovate Posts: 16,217 Forumite
    Combo Breaker First Post
    Options
    As has been commented dozens of times by various people, for most people there is not much point putting any money into a cash ISA this side of March 2015. Particular if you are possibly going to spend the money by then.
  • jimjames
    jimjames Posts: 17,621 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    innovate wrote: »
    As has been commented dozens of times by various people, for most people there is not much point putting any money into a cash ISA this side of March 2015. Particular if you are possibly going to spend the money by then.

    Absolutely. Why would you bother with an ISA at 1.6% rather than 5% ttaxed from a current account
    Remember the saying: if it looks too good to be true it almost certainly is.
  • john-306
    john-306 Posts: 722 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    jimjames wrote: »
    Absolutely. Why would you bother with an ISA at 1.6% rather than 5% ttaxed from a current account

    As stated, if by any chance we don't move then putting all our money in a current account will lose it's tax free status for the future if rates hopefully improve. Thanks for options though I'll look into those rates
  • innovate
    innovate Posts: 16,217 Forumite
    Combo Breaker First Post
    Options
    How will your money lose its tax free status if you keep it in good current accounts until late March 2015? Why does it need to go into an ISA now?
  • jimjames
    jimjames Posts: 17,621 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    innovate wrote: »
    How will your money lose its tax free status if you keep it in good current accounts until late March 2015? Why does it need to go into an ISA now?

    And if the money is being spent then long term tax free status is irrelevant anyway, just get best return now. You can still put £15k or £30k joint into ISAs every year going forward anyway.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • macca64
    macca64 Posts: 286 Forumite
    First Anniversary Combo Breaker
    Options
    jimjames wrote: »
    Absolutely. Why would you bother with an ISA at 1.6% rather than 5% ttaxed from a current account

    But if you are lucky enough to be able to fill both the 5% taxed and the tax free ISA, then that would be one reason!

    But yes if you can't fill both, then obviously the 5% taxed current account is the better option.
    2014 running challenge 587.4 miles / 250 miles
  • jimjames
    jimjames Posts: 17,621 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    macca64 wrote: »
    But if you are lucky enough to be able to fill both the 5% taxed and the tax free ISA, then that would be one reason!

    But yes if you can't fill both, then obviously the 5% taxed current account is the better option.

    Absolutely. However when the average savings balance is under £2000 and 66% of people have nothing or under £1k then an ISA is currently irrelevant for them.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • ceredigion
    ceredigion Posts: 3,709 Forumite
    First Anniversary Photogenic First Post
    Options
    jimjames wrote: »
    Absolutely. However when the average savings balance is under £2000 and 66% of people have nothing or under £1k then an ISA is currently irrelevant for them.



    Absolutely correct , however the OP clearly isn't in that situation.

    Strangely I find myself in exactly the same situation as the OP , in as much as , im messing around trying to get the best in currant ISA's and whilst I do have all the interest paying currant accounts going , they are not all filled to the max. But I am expecting another load of inheritance. Which means I cant remove my existing ISA's in order to max out the other accounts as I'll have no where to put the money that's on the way.
  • john-306
    john-306 Posts: 722 Forumite
    Photogenic Name Dropper First Post First Anniversary
    Options
    ceredigion wrote: »
    Absolutely correct , however the OP clearly isn't in that situation.

    Strangely I find myself in exactly the same situation as the OP , in as much as , im messing around trying to get the best in currant ISA's and whilst I do have all the interest paying currant accounts going , they are not all filled to the max. But I am expecting another load of inheritance. Which means I cant remove my existing ISA's in order to max out the other accounts as I'll have no where to put the money that's on the way.



    Exactly.
    Hopefully though we've found a house we like and fingers crossed can proceed with minimal weeks in ISAs at 0.5%
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards