Savings advice please from more clued up folks! Northern Rock 6% fixed ISA best idea?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
1 reply 516 views
GlynGGlynG Forumite
89 Posts
Part of the Furniture 10 Posts Combo Breaker
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have £6,500ish in an old Alliance & Leicester ISA I'd like to transfer elsewhere for a better rate. For one thing I've been getting £5 a month charges for ages now for not crediting the current account I have with them with £500 a month and I'd just like to close the whole lot down (been depressed and terribly motivated to sort out my over-spending and finances both of which generally are a MESS).

I also have £3,300ish frozen in Icesave which I'd probably like to add, ideally to the same ISA later, when it becomes free.

Since interest rates seem highly likely to go down along with bank being unlikely to offer many new offers in the coming year am I correct in thinking fixed rates would be a better option than variable yes? I'm lucky to have a secure job with a university and shouldn't need access to the money in the year.

Are Northern Rock actually more safe than the other options for being nationalised? I know some other banks are offering slightly higher fixed rates at the moment but they all seem pretty small players and potentially at risk of going under whereas I believe Northern Rock would be safe from that.

One final question, which offers better gain - money in a 6% tax free ISA or money in the £500 a month RBOS 10% (non high rate taxed) regular saver I have? Should I keep money back from the ISA in a good rate normal savings/current account and drip feed it in there or is it better to keep it all in an ISA?

Thanks in advance for any advice / suggestions!

Glyn

Replies

  • MilarkyMilarky Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
    ✭✭✭✭
    Are Northern Rock actually more safe than the other options for being nationalised?
    They are the safest!
    RBOS 10% (non high rate taxed) regular saver I have...
    I think you mean 'HBOS' - opened before end of July?
    ..Should I keep money back from the ISA in a good rate normal savings/current account and drip feed it in there or is it better to keep it all in an ISA?
    That depends on your ISA allowance - which I assume you haven't used this year?

    As it stands I wouldn't close the 10% account - I'd max out at £500 per month whilst you have it. In any case there is an interest-rate penalty do don't want to have by not maintaining payments into it. So keep the 'RBOS' 10% account

    The A&L current account: You can close it by phoning up you know. You can also pay £500 in a month to avoid the charge. It's up to you, but I would do either of the above rather than being depressed about it.

    Yes apply to move the A&L ISA for a better rate. It is a bit tedious at first I agree but after you've done it once, it gets so much easier you'll be looking forward to the next transfer you make.
    .....under construction....
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals