Savings help!

Baldur

teaspoon1 wrote: »

Can I transfer the money after the year is up without penalty?

See what the account's Terms & Conditions say.

Which looks better? If the NatWest rate drops significantly, everything else might too. So I might be better off with BM...

Your call - I know which I would be going for in the current climate.

teaspoon1

Baldur wrote: »

See what the account's Terms & Conditions say.

Your call - I know which I would be going for in the current climate.

The fix?

Just noticed... I can't find anything that says I can transfer into the BM one!!

Baldur

teaspoon1 wrote: »

Just noticed... I can't find anything that says I can transfer into the BM one!!

See Paragraph 3 http://www.askbm.co.uk/savings/p/isa/product.asp?id=146&p=terms

<Edit> See YorksireBoy's post HERE re: the Natwest Cash ISA - I wouldn't take too long making your mind up.

teaspoon1

Baldur wrote: »

See Paragraph 3 http://www.askbm.co.uk/savings/p/isa/product.asp?id=146&p=terms

<Edit> See YorksireBoy's post HERE re: the Natwest Cash ISA - I wouldn't take too long making your mind up.

:eek:

Thanks for all your advice so far Baldur. That is scary how they reduced the IR just like that!!! Looks like BM for me. Is the monthly interest one better? I get paid interest monthly on my Halifax current a/c and I like seeing it paid in each month.

Any thoughts on opening the A&L current a/c?

evergreen

Unless you actually want to spend the interest now, why not have it paid into the isa account so your interest on interest is tax free too?

Baldur

teaspoon1 wrote: »

Is the monthly interest one better? I get paid interest monthly on my Halifax current a/c and I like seeing it paid in each month.

The AER is the same whether you choose the annual or monthly option, so 'better' is subjective as any slight difference in interest is going to be measured in pennies - if you feel happier seeing the interest accrue monthly, then go for that option.

teaspoon1

evergreen wrote: »

Unless you actually want to spend the interest now, why not have it paid into the isa account so your interest on interest is tax free too?

Oh yes, that's what I intend to do. I don't touch my ISAs, they're for an eventual house deposit (when prices fall a lot further).

teaspoon1

Baldur wrote: »

The AER is the same whether you choose the annual or monthly option, so 'better' is subjective as any slight difference in interest is going to be measured in pennies - if you feel happier seeing the interest accrue monthly, then go for that option.

Yes indeed. Right, I am off to apply for a transfer now! I'm also going to apply for an A&L current a/c. Thanks for all your advice.

teaspoon1

OK, I called BM and they are sending me a transfer form. I also applied for an A&L current a/c online and was accepted. I'm going to keep a constant £2,500 balance in A&L (the max they will pay the 8.5% interest on). I need to fund it with £500pm but then I will just transfer £500 back to the Halifax to get my 5.12% there.

Here's to getting better interest!!! 4.8% on an ISA is an insult... and the guy at NS&I agreed with me when I rang.