Should I move my savings?

Seamooie

I was thinking about the money I have in savings at the weekend and think I have made a bit of a mistake for the past few years. When I turned 18 I was forced to move the money out of my high interest young savers account and was recommended to put it into a Cash ISA. However, as I do not work (I am a student) and so do not pay tax, I wonder is this the best option for me. Surely my money would be better fixed in a high interest savings account?

Any advice would be appreciated.

Thanks

Steve_xx

It depends:

1. What rate is your ISA paying
2. Are you a taxpayer, and if not when do you think you will be?

If you are likely to start paying tax in the next year or two it would probably be best to have an ISA. If you arent planning on paying tax for 10 years then perhaps a 1 year bond would be best with Kaupthing or ICICI Bank.

http://www.kaupthingedge.co.uk/?gclid=COOb35__lZUCFQ6TMAodmHxQgQ

http://www.icicibank.co.uk/

LucyTheDwarf

Well, it depends on the rate of your ISA, and whether you intend to use the money in the short term. And also, how much you're saving and when you will be earning. What's in an ISA tax free now, is tax free as long as you leave it there - but if you moved your money to a normal savings account, when the day comes that you have to pay tax (scary!), you'll only be able to move £3600 of it.

But yes, in the short term, you may find that you earn more interest with a high interest savings account. There are ISAs with pretty good rates too, mind, so you might want to look at just switching ISA providers instead?

ISAs accepting transfers in: http://www.moneyfacts.co.uk/savings/bestbuys/mini-cash-isas-accepting-transfers-in.aspx
Fixed rate ISAs: http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rates-isa.aspx

jimmy111

Steve_xx wrote: »

It depends:

1. What rate is your ISA paying
2. Are you a taxpayer, and if not when do you think you will be?

If you are likely to start paying tax in the next year or two it would probably be best to have an ISA. If you arent planning on paying tax for 10 years then perhaps a 1 year bond would be best with Kaupthing or ICICI Bank.

http://www.kaupthingedge.co.uk/?gclid=COOb35__lZUCFQ6TMAodmHxQgQ

http://www.icicibank.co.uk/

Probaly too late, but I'd steer well clear of ICICI. My experiences with them indicates to me that the IT and their so called "customer service" delivery are poor. It's not worth the hassle for a marginally better rate from their close competitors. I'll not put any more of my money their way!