Savings Help

PinkFloyd
PinkFloyd Posts: 2 Newbie
in Savings & investments
Hi All,

I am seeking some help with my savings. Currently I have £5340 in a BoS ISA, so I've used up my tax-free allowance on that for this year. I also have around £3.5k in an instant access saver with BoS which is paying next to nothing.

My question is this; I have to use the money this summer (June / July) So I'll leave the ISA alone. However, is it worth me seeking another instant savings account? I add around £900 a month to it so the potential balance by summer could be circa £7k.

Would I actually gain anything by switching the money to another account, or is it merely just a 'safe place' to stash it. To be honest I'm not sure how the interest you make is actually applied?

Help much appreciated :beer:

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Interest is calculated daily based on the balance in the account for that day. So getting a higher rate, even if it's only for the short term, make sense.

    Have a read of this link from the top of the page to understand the wider savings market.

    But if you want to stay with Bank of Scotland there are some choice there.

    You could move the easy access funds in to the Internet Saver account. Add them to the Access ISA in April when the new tax year start (remember that funds withdrawn from a cash ISA can't be replaced, but you have a 5,640 deposit limit next tax year).

    There's also the Monthly Saver paying 3.25% on regular savings of £250 or more. And that allows unlimited withdrawals too.

    So lots of choices. You will be able to get better rates elsewhere. But you can almost certainly imporve on what you've got with BoS.
  • PinkFloyd
    PinkFloyd Posts: 2 Newbie
    edited 25 February 2012 at 7:55AM
    opinions4u wrote: »
    Interest is calculated daily based on the balance in the account for that day. So getting a higher rate, even if it's only for the short term, make sense.

    Have a read of from the top of the page to understand the wider savings market.

    But if you want to stay with there are some choice there.

    You could move the easy access funds in to the Internet Saver account. Add them to the Access ISA in April when the new tax year start (remember that funds withdrawn from a cash ISA can't be replaced, but you have a 5,640 deposit limit next tax year).

    There's also the Monthly Saver paying 3.25% on regular savings of £250 or more. And that allows unlimited withdrawals too.

    So lots of choices. You will be able to get better rates elsewhere. But you can almost certainly imporve on what you've got with BoS.

    Thanks :)

    I forgot I could start adding to my ISA in April :o I'll double check exactly what I have and take it from there.

    Just to clarify though; Most account summaries state that interest is calculated daily, and paid annually on the anniversary of the account opening. What happens if you withdraw all the funds for use prior to the anniversary?
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Interest is paid on the anniversary or on closure of the account. If there is a conditional bonus, leave £1 in the account until it is paid.
    Eco Miser
    Saving money for well over half a century
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