2.5% regular saving v 1.75% standard ISA

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  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    bsms1147 wrote: »
    3%, and can open online too.

    That's the Newcastle one, not the Nottingham one :cool:
  • bsms1147
    bsms1147 Posts: 2,261 Forumite
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    Archi_Bald wrote: »
    That's the Newcastle one, not the Nottingham one :cool:
    BALLSACKS

    n.b. I shouldn't offer advice after 1am.
  • Snowbelle
    Snowbelle Posts: 353 Forumite
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    MumOf2 wrote: »
    The only problem with the interest-bearing current accounts is that they often require 2 direct debits to be paid out each month (so that counts out council tax because that's only 10 months a year). Also the Lloyds Vantage accounts are reducing their interest on 2 July to pretty low rates.


    Which means you can't hold much cash in these accounts and get the 4% or so interest. Any extra over and above, say, £5,000 (as with Lloyds Club) earns nothing.


    Nottingham Building Society have a 4% ISA regular saver:
    £10 - £1,250 a month
    Can vary the amount each month
    One off opportunity in March 2015 to make it up to (max) £15,000
    Open in branch


    So as long as you're maxed out with good interest current accounts where possible, you can put the surplus in the ISA. If you did £1,250 each month the interest would be c.£325 at the end of the year. Which is pretty OK considering the flexibility of the T&C. And no direct debits required!!!


    MumOf2
    That's OK if you have a branch nearby.
  • jimjames
    jimjames Posts: 17,625 Forumite
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    MumOf2 wrote: »
    Thanks, Jim James. I suppose the other advantage of the ISA is that once it's in it's in and the tax free element (as long as the govt doesn't withdraw it) is there for the years ahead.

    For £50k that's certainly a good point. For £5k it's irrelevant. If you don't put the money in this year you can do so next. Use it or lose it is purely a marketing gimmick for most people with modest savings as are ISAs currently.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Linclass_2
    Linclass_2 Posts: 31 Forumite
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    Hi

    We [family] have opened three of these accounts online, when doing so transferred opening balance from our NW e-ISA's. My account is a month older than hubby & daughter. So I paid my second payment in again direct from e-ISA.

    Hmm found out a few days ago all my monies have been returned to my e-ISA account. NW explanation it has to be 'new' money. So why do they allow transfers in on opening the account initially AND subsequently. Surely ANY money placed in the Regular Saver ISA is NEW money!
  • le_loup
    le_loup Posts: 4,047 Forumite
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    You did read the very simple T&Cs to this account?
  • jenfa
    jenfa Posts: 125 Forumite
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    MumOf2 wrote: »
    The only problem with the interest-bearing current accounts is that they often require 2 direct debits to be paid out each month (so that counts out council tax because that's only 10 months a year).MumOf2

    Just to say the law has changed that you can now ask your council to allow your direct debits over 12 months, they don't advertise the fact as it costs them more but I have changed mine this month specifically for the Santander 123 a/c. My Club Lloyds ones are both a charity donation and son's St Johns ambulance subscriptions max £14 a month there is no qualification as to how much they have to be!
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    Linclass wrote: »
    Hi

    We [family] have opened three of these accounts online, when doing so transferred opening balance from our NW e-ISA's. My account is a month older than hubby & daughter. So I paid my second payment in again direct from e-ISA.

    Hmm found out a few days ago all my monies have been returned to my e-ISA account. NW explanation it has to be 'new' money. So why do they allow transfers in on opening the account initially AND subsequently. Surely ANY money placed in the Regular Saver ISA is NEW money!


    It isn't new money if you transfer it in from another ISA. If you do wish to use money from your old ISA, you need to first withdraw the money into a current account, and then deposit it into the Regular Saver ISA.

    Unfortunately, the Nationwide system support for cash ISAs isn't perfect. They do allow the distribution of ISA funds across several accounts, even in the same financial year, but they haven't put a block on funds coming into ISAs that do not allow transfers in.

    You might want to book an appointment with a Branch Manager to discuss the problem and see what they can do for you. If you ask politely and calmly, they might put the money into your Regular Saver ISA via your current account, with the credit dates backdated for interest accrual purposes.

    But this sounds a huge amount of hassle for something that isn't guaranteed to happen, and for a tiny bit of interest only. You might just want to put the whole thing down to experience and feed the money 'properly' into the Regular Saver from now on. If you need to shift a full £15K, you will be able to top up to £15K next March.
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