Rate Drop

JimBlizz

Hello all,

My apologies in advance if this has already been covered.
I have just had my FSCS compensation for my Icesave ISA.

I have around around £4,000.00 and as it is currently in my Alliance & Leicester Premier account the first £2,500.00 is earning 8.5% before tax (20%) - the rest is earning nothing.

The 8.5% wont run out for 6 or 7 months.

Given that the base rate has just dropped again - should I leave the 2,500 where it is and get the rest into a decent normal savings account asap or wait until I get my certificate (I'm not sure how long this will take) in order to get it all into an ISA?

Points that may matter:

• I'd like a no-notice account as I will soon be moving and want to keep access as an emergency fund.
• I am 24 later this month.
• I had only moved the ISA to Icesave this year, and had subsequently paid in.

What would you the good people of MSE do in my position?

Thanks!
Jim

ScottyBoy_2

I would definately leave the £2,500 in the A&L account (as I do) as the 8.5% rate after tax is something like 4.5/5% maybe more (I think for a 20p rate payer) which from experience is better than my ISA rate after todays cut!

But get more professional advice!

But if it were me I would leave it maxed at £2,500 (as I have) and put the rest in an ISA with the best rate I could get and each month transfer the interest from A&L to the ISA (if possible) thats what I do, as in A&L anything over £2,501 is only 0.1% interest.

But again seek some advice from a more knowledgable professional/follow board members!

Hope this helps