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ISA versus Fixed Rate

hey guys,

So I'm planning a bit ahead for April's ISA deposit and am realizing that I may be better off putting that money into my existing regular savers instead, was hoping for your input in case i'm overlooking anything.

Basically I have the natwest 4.61% ISA account and the 10% Halifax International regular saver valid until October '09 which I can deposit up to £2,500 a month into.

Now even after removing taxes from the 10% halifax account, my £3,600 contribution would gain far more interest than if I had it in a tax free natwest ISA account, no?

In which case, should I just put the money into my fixed rate, and eventually use up my ISA allowance where hopefully the rates will be back up or at least attractive enough to subscribe to?

thanks!
5.41 kWp System, E-W. Installed Nov 2017
Lux + 3 x US2000B + 2 x US3000C battery storage. Installed Mar 2020.

Comments

  • a7man
    a7man Posts: 365 Forumite
    Thats right for the short term, if you are investing for a v long time though filling your ISA every year will probably be more beneficial as you protect more of your money from tax.

    However if you are using your 09/10 ISA you could put it in savings from now until end March 2010, then transfer it to your cash ISA which will give you an extra £40 or so.
    Living the good life spending all my money but loving it!!
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