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  • FIRST POST
    • gwana
    • By gwana 6th Sep 17, 7:18 PM
    • 5Posts
    • 0Thanks
    gwana
    cash ISA confusion
    • #1
    • 6th Sep 17, 7:18 PM
    cash ISA confusion 6th Sep 17 at 7:18 PM
    This is a dead simple question for this site I realise...

    We have a cash ISA paying negligible interest and want to switch to something else (not S&S ISA due to risk). Lots of advice on MSE says that the new personal allowance has made cash ISAs far less useful, plus there are far better %s on offer from current/savings accounts at the moment than from cash ISAs.

    But (I think) those current/savings accounts don't allow for big transfers. We have £15K+ in our current ISA. Should we therefore just switch to a 2-3-year cash ISA? (e.g. Virgin Money as suggested on this site at: /savings/cash-isa-transfers#fixed ). It's our emergency fund - something we've never used as yet, so we don't mind having an early withdrawal penalty (within reason).

    Or is there a savings/current account we could switch it all into in order to get the better rate (but without having to make monthly contributions) ?

    Thanks to anyone who can help!
Page 1
    • eskbanker
    • By eskbanker 6th Sep 17, 7:31 PM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    • #2
    • 6th Sep 17, 7:31 PM
    • #2
    • 6th Sep 17, 7:31 PM
    It's a trade-off between effort and reward - if you have £15K+ and have a set of criteria such as
    • Must all be in one place
    • Must not require any minimum monthly funding
    • Must be accessible during term
    then yes, fixed rate cash ISAs probably are the answer for you, but if you want to get the best return on your money then that does entail a different approach (as outlined in http://www.moneysavingexpert.com/savings/which-saving-account)!
    • newatc
    • By newatc 6th Sep 17, 9:31 PM
    • 81 Posts
    • 68 Thanks
    newatc
    • #3
    • 6th Sep 17, 9:31 PM
    • #3
    • 6th Sep 17, 9:31 PM
    What about Virgin Money Double Take E-Saver paying 1.21% which allows up to 2 withdrawals a year thus satisfying the emergency fund criteria.This is not an ISA but that doesn't seem an issue in your situation.
    • gwana
    • By gwana 6th Sep 17, 10:42 PM
    • 5 Posts
    • 0 Thanks
    gwana
    • #4
    • 6th Sep 17, 10:42 PM
    • #4
    • 6th Sep 17, 10:42 PM
    Thank you - yes, you've hit the nail on the head when it comes to ID'ing my issue here! The problem's the max payment seems to tends to be around £1,000 a month, so it takes a long time to even start getting interest on a significant wedge of £15K
    • gwana
    • By gwana 7th Sep 17, 8:00 PM
    • 5 Posts
    • 0 Thanks
    gwana
    • #5
    • 7th Sep 17, 8:00 PM
    • #5
    • 7th Sep 17, 8:00 PM
    Yes, that's a good idea - nice compromise. Thank you very much
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