Live on £4000 for a year - part 4 (Oct - Dec 2008)

Frugaldom

:eek: Hoooooooooleeeeeeeeshmoleeeeeeeeee... the bank rate has just been cut to 3%!!!!!!! Stoozing could be almost wiped out! Gone researching! Apologies for the panic - it took me by surprise BIG STYLE!

bails

Yup, just back from school and seen that on here too. My question is - all opinions gratefully received - should I move some money out f one of my ISAs and put in a fixed bond for a while to earn better interest, or is it better to keep it in the ISA longer term? I wish I knew about these things
I hope my mortgage provider passes on the cut, it hasn't with the last two :mad:

thriftylass

bails wrote: »

Yup, just back from school and seen that on here too. My question is - all opinions gratefully received - should I move some money out f one of my ISAs and put in a fixed bond for a while to earn better interest, or is it better to keep it in the ISA longer term? I wish I knew about these things
I hope my mortgage provider passes on the cut, it hasn't with the last two :mad:

Not sure, but I thought even fixed rate accounts don't give you that much more interest plus you pay tax on it which brings it down and the money is stuck there for at least a year. Fixed term accounts give you about 6-7% which after tax is 4-5 %, nearly the same as your ISA I think. I think they're better for a big lump sum or money you have that is over your taxfree allowance for this year but I wouldn't take money out of an ISA to do that.

Please someone put me right if I've just given the wrong advice .

bails

Thanks Thrifty, that's exactly the kind of answer I needed - simple and clear :T Paying off the mortgage seems the best plan, will need to see about that...

redglass_2

So my balance transfer wasn't really worth it? I might as well have paid it off and not bothered stoozing! :wall: And the government claims it wants to encourage savers! Hope your research turns up something good, Nyk...

taka

bails wrote: »

Yup, just back from school and seen that on here too. My question is - all opinions gratefully received - should I move some money out f one of my ISAs and put in a fixed bond for a while to earn better interest, or is it better to keep it in the ISA longer term? I wish I knew about these things
I hope my mortgage provider passes on the cut, it hasn't with the last two :mad:

I guess it would depend. Do you pay tax? Your cash ISA is tax free so if you take the money out you loose the ability to put that money back in a tax free ISA "wrapper" again (unless you still have space to fill it again later)! Even if the goverment get rid of ISAs at some point they will probably still be tax free interest earners years down the road (like TESSAs I guess). Then again if you don't pay tax this point is somewhat moot!

I imagine the fixed rate bond interest rates will come down a bit too. Is this money you need easy access to? There are (or were :rolleyes: ) fixed rate ISAs out there which are at better rates than the variable ones if you are happy to not take money out for a yr or so

Basically I've no idea... :rotfl: ... sorry!

I may have to rethink my mortgage overpayment strategy - I was about to pay into an ISA as its rate is higher than my mortgage (and mentally labelling the money for my mortgage once the fixed rate is up). However, with the rate changes my ISA'll probably pay less interest than my mortgage costs me in interest for that money I'm on a fixed rate till 2012 and its looking a horribly high a rate if Nationwide pass on the int changes I'm a bit scared of overpaying the whole lot off the mortgage .

I guess I should be lucky that I have a mortgage and a job. I hope this change raelly does help the economy to recover... :rolleyes:

oooops took to long typing - beaten to it!!

Brighton_belle

General astonishment in the office at the rate cut - and I work for an IFA. Completely unofficially, my IFA reckons the mtg companes will not be passing on much of the cut unless you have a true tracker mtg. But at the moment it's anyone guess how things are going to pan out.
I've just got my building and contents renewal quote, so this weekend am going to try and see if I can lower it & then see if I can get it through a cashback compnay. I'm always a bit scared of not seeing some small print in this sort of thing and finding lots of subclauses later.
Found a beautiful deep pink 'food protecting umbrella' on way to work, left outside someones house 'free to passersby' . I've given it a good home:D

cw18

Penny2myName wrote: »

You dont HAVE to have the drawers in a drawer freezer do you?

You mean they're supposed to have drawers :rotfl:

Seriously, when I offer my f/freezer on F/cycle it may well be listed as 'minus drawers'. I took them out yeeeeaaaaaars ago, and while I'm pretty certain they did the house moves with us in 2001 and 2002 I don't actually have a clue as to where they are now Looking for them is one of many 'to do when I get a chance/feel the inspiration' jobs on my list :rolleyes:

Our built in one only has one drawer front, so much the same set-up there. One shattered about 14 months after we moved in, so I ordered a new one (which wasn't cheap, but didn't break the bank). About 6 months later 2 more shattered, so I decided not to bother if they were going to go that fast. The replacement one now has two huge chunks missing from it being about 16 months old. Clearly not a plastic suited to cold temperatures :mad:

cw18

taka wrote: »

....... and its looking a horribly high a rate if Nationwide pass on the int changes

They only passed on 0.3% of the 0.5% cut last month, so I'll also be watching them with eagle eyes this time. But in our case it's because if they don't pass on the full rate we have to find more of the payment after IS Mortgage Assistance

(We've been on variable with them right from the outset in May 2002)

Frugaldom

Hi guys and gals,

I'm not much further forward with the 'to stooze or not to stooze' dilemma and certainly can't decide what to do about my ISA.

Bails, I understand what you're saying, but I have just been shocked to find out that my current ISA interest rate (why, oh why do I never read the updates?!!!) has dropped to 4.6%! :eek: That's only 5.75% before tax, so I would earn more if the money was in a high interest account, ESPECIALLY if work dries up and I end up being below the new income tax threshold of £6,035. I think I need to take a serious look at transferring my ISA asap! I've tried transferring my stoozepot from ICICI but the site is failing to respond! :mad:

But now for some good news that cheered me up no end - I had registered with a site called MoveMe.com (I think I got points for joining it somewhere along the line) and, this afternoon, I have just received a big box of 'freebies'! :j It's jam packed with stuff - a 'good luck in your new home' card, cleaning products, toilet rolls, kitchen rolls, energy saving lightbulb, litre of longlife milk and a full size box of (expensive brand) muesli! Not content with that, I also received a free Zoflora air freshener this morning, so a good day for moneysaving perks despite the BoE bombshell! :T