Question regarding 1.4% ISA or 1.5% Sant. 123 Acc
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scoot65
Posts: 470 Forumite
I'm in the process of transferring my ISA from my existing provider to Leeds BS. I applied to get Leeds BS 2 yr fixed rate ISA at 1.4% (issue 81) just before the rate dropped to 1.25%.
Initially I was not going to add this year's ISA allowance, but since the notice of Santander's 123 rate top to 1.5% I thought I might stick this year's ISA allowance cash in the 1.4% ISA too.
My question…….
Would the £15240 be better in the 1.4% ISA rather than Sant 123 account at 1.5% ? ….paying the £5 monthly fee and not receiving any cash back
I already have all the 'high interest' current accounts maxed out so can't stuff it in them. I also don't have DD's to get cash back on the Santander 123 account
Many thanks
s65
Initially I was not going to add this year's ISA allowance, but since the notice of Santander's 123 rate top to 1.5% I thought I might stick this year's ISA allowance cash in the 1.4% ISA too.
My question…….
Would the £15240 be better in the 1.4% ISA rather than Sant 123 account at 1.5% ? ….paying the £5 monthly fee and not receiving any cash back
I already have all the 'high interest' current accounts maxed out so can't stuff it in them. I also don't have DD's to get cash back on the Santander 123 account
Many thanks
s65
0
Comments
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A £60 per year fee is definitely more than 0.1% interest on £15,240.0
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Thanks for the reply, yes quite right!
I forgot to mention that I have £20k in the Sant 123 account… if this makes any difference??0 -
If you keep the Santander 123 you will still pay the fees.
Unless you receive over £1000 total interest, you won't pay tax on the Santander interest, so 1.5% is better than 1.4%.
You could have been earning much more by spreading the £20k around the 6%,5%, 4% and fee-free 3% accounts.
You still can, but maybe not for much longer.Eco Miser
Saving money for well over half a century0 -
Yes it will if you can't find an alternative home for the other ~£5k. As Eco Miser points out, you'll continue paying the fee unless you close the 123 account.I forgot to mention that I have £20k in the Sant 123 account… if this makes any difference??
It seems the OP has this covered by the following comment:You could have been earning much more by spreading the £20k around the 6%,5%, 4% and fee-free 3% accounts.
You still can, but maybe not for much longer.I already have all the 'high interest' current accounts maxed out so can't stuff it in them.
Hopefully there are one or two on that list he has missed.0
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