Isa or savings account??

samina99

Im waiting for my final chq to come through from ICESave / via the compensation route..This will be about 1.2k plus I want to save about £400 a month.
I haven't used up my ISA allocation for this year...so what do I do?

Which Cash ISA do I get ?
Or put the whole lot into a savings account?

anselld

ISAs don't have the best rates right now but in the long run you are probably better to keep the tax-free status (assuming you are and will continue to be a tax payer)

You should get a certificate through the post which will allow you to transfer tax free into another ISA this year. Strictly speaking I think you can only have one ISA per tax year so if you want to keep this year's allowance you need to use this certificate and treat it as a transfer (even though ICESave is bust)

Choose your rate from moneysupermarket.com etc but make sure you get one that accepts transfers and make sure you can make further payments monthly thereafter. I would not personally be inclined to lock in to any long term deals at the current rates so that you can transfer if necessary in future.

samina99

the icesave money was a savings account not an isa

anselld

No problem then!
Kent & Reliance BS perhaps?

Nick_C

The Cheshire BS (now owned by Nationwide but still with its own FSA registration) is offering 4.5% fixed for 1 year.

http://www.thecheshire.co.uk/investment-saving-account/individual-saving-account/index.asp

Nationwide itself is offering 4% for 2 years or 4.25% for 3 years.

http://www.nationwide.co.uk/savings/cash_isa/cash-isa.htm

All these are fixed rate. Personally, i would go for 2 years @ 4.25%

anselld

Nick_C wrote: »

The Cheshire BS (now owned by Nationwide but still with its own FSA registration) is offering 4.5% fixed for 1 year.

http://www.thecheshire.co.uk/investment-saving-account/individual-saving-account/index.asp

Nationwide itself is offering 4% for 2 years or 4.25% for 3 years.

http://www.nationwide.co.uk/savings/cash_isa/cash-isa.htm

All these are fixed rate. Personally, i would go for 2 years @ 4.25%

Good rates, but surely you can't pay in further regular savings to a fixed rate account.