best savings option

general_melched

Hi,

I have 2 cash ISAs with about 5,000 gbp in each as well as 3,000 in a savings account. Would it be better to clump all this money together in a single ISA or savings account? WOuld I earn more money after tax?

Any help much appreciated.

Many thanks and have a great day.

Mark

Baldur

It depends on the rates of interest offered by your ISAs & savings account. You can always transfer your ISAs to the provider offering the best rate (currently around 6.25% for variable rate products) and, if you have not already used this tax year's allowance, add your 3,000 savings - you would need a rate of 7.81% from a taxable savings account (as a basic rate taxpayer) to beat an ISA at 6.25%.

isofa

You might also want to look at the ISA sub forum and post there instead...

MrExample

Many banks offer better rates if you've got a large chunk of money to transfer in.

Of course, many offer better rates if you've only got a little bit. :-)

e.g. Natwest offer 6.87% AER for balances of £9,000 - £17,999, BUT that includes a bonus.

One thing for sure is that you should shelter as much of it as you can from the tax man, assuming you don't need it in the short term.