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Choosing an ISA
OriolaW
Posts: 113 Forumite
I would like help choosing an ISA. I'm very new to saving and don't have much put away yet.
I would like to access it without notice and pay in each month. I would also like to be able to manage the account online.
I have read 'The best ISAs currently available list' and to be honest it really doesn't make sense to me yet.
I was looking at the Nationwide Easy Saver ISA with whom I do not hold an account.
I only have £500 to deposit upon opening of any ISA.
I would like to access it without notice and pay in each month. I would also like to be able to manage the account online.
I have read 'The best ISAs currently available list' and to be honest it really doesn't make sense to me yet.
I was looking at the Nationwide Easy Saver ISA with whom I do not hold an account.
Interest rates - variable (AERs)
Balance
£1+
AER* % 0.50
AER** % 2.25
Gross p.a. % 2.25
Net p.a. % n/a
Interest
Interest is added annually on 30 September. You can choose to add interest to your Easy Saver ISA, any other Nationwide savings account (excluding Regular Savings and Flexclusive Regular Saver) or your current account.
I only have £500 to deposit upon opening of any ISA.
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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Comments
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Can I ask why you want to have an ISA? If you want an account from which you are withdrawing regularly, an ISA might not be your best choice because you can earn more interest in other accounts.
E.g. right now, you could open a Nationwide FlexDirect, which is instant access and pays 5% AER (4% after basic rate tax). You need to pay in £1,000 a month but you can do this by re-cycling e.g. your monthy £500 a couple of times between your current account and the FlexDirect.
Other accounts with instant access include the Lloyds Vantage (3% AER, 2.4% after BR tax) and the Santander 123. You need to read up about them, there is plenty of information on their websites and on MSE.
Other alternatives with much better interest rates than ISAs are Regular Savers, but they generally lock your money up for 12 months.0 -
If you're willing to open another Nationwide account to satisfy the requirement, it looks like a good option (and the FlexDirect is the best choice of account). You could also opt for the NS&I Direct ISA which offers the same rate.0
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Can I ask why you want to have an ISA? If you want an account from which you are withdrawing regularly, an ISA might not be your best choice because you can earn more interest in other accounts.
E.g. right now, you could open a Nationwide FlexDirect, which is instant access and pays 5% AER (4% after basic rate tax). You need to pay in £1,000 a month but you can do this by re-cycling e.g. your monthy £500 a couple of times between your current account and the FlexDirect.
Other accounts with instant access include the Lloyds Vantage (3% AER, 2.4% after BR tax) and the Santander 123. You need to read up about them, there is plenty of information on their websites and on MSE.
Other alternatives with much better interest rates than ISAs are Regular Savers, but they generally lock your money up for 12 months.
I wish to save long term however a fixed ISA 2+ years is not beneficial to me presently as I would be unable to top up beyond the first deposit, or so I've read. I will not be withdrawing regularly if at all but in case of emergency I'd like to be able to access any funds.
EDIT: Am I correct in my understanding that moving £500 back and forth a couple of times from CA to FlexDirect will still count as paying in £1000 for the month? Even if the balance only shows £500Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I'm just going to stick with the Nationwide ESHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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Am I correct in my understanding that moving £500 back and forth a couple of times from CA to FlexDirect will still count as paying in £1000 for the month? Even if the balance only shows £500
yesI'm just going to stick with the Nationwide ES
If you want to save for the longer term, definitely consider the FlexDirect and/or a Regular Saver to save up a lump sum to put into an ISA after 12 months. Best Regular Savers are in the first few posts of https://forums.moneysavingexpert.com/discussion/comment/6932895#Comment_6932895
Why settle for 2.25% when you can easily get almost double or more than double.0 -
...
Why settle for 2.25% when you can easily get almost double or more than double.
I agree, apply here and get £70 Cashback.
Come next March if you think you'd like an ISA open one then - you could then add to it after the new ISA year starts.0 -
yes
If you want to save for the longer term, definitely consider the FlexDirect and/or a Regular Saver to save up a lump sum to put into an ISA after 12 months. Best Regular Savers are in the first few posts of https://forums.moneysavingexpert.com/discussion/comment/6932895#Comment_6932895
Why settle for 2.25% when you can easily get almost double or more than double.
I opened the FlexDirect it has been a nightmare to get all the things I need for the online side of things but hey ho. It is 5% on balances up to £2500, then nothing. I will look at this link for regular savers so I can possibly gain interest with an additional account.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Bear in mind that if you want to top up an ISA before 5th April you'll need a regular saver that allows you to withdraw. Some don't (First Direct in particular).I will look at this link for regular savers so I can possibly gain interest with an additional account."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
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