ISA questions and savings help!

FurryPaws

Hello peeps,

I've been a daily follower of the site for acouple of years but I'm looking some advice for my particular situation..

I've been living at home with my parents for the last while to try and save money to get on the property ladder. Now that prices are going down even more this year I may be able to afford my own place. Though that depends on how much I can save for a deposit and obviously what happens to house prices between now and the end of the year..

Anyway, I have a question regarding a Cash ISA I currently have from years gone by (not this years allowance.) It's sitting on a lowish rate and not really working for me. Should I pluck it out and into a new account just before the end of the financial year or should I leave it in the hope that banks may well be setting up some higher interest rate accounts than what is on offer today since the base rate flatlined to 1.5% ? What do you think? Also, if I were to move it now would I be able to move it again in April or do I have to keep it in that account for a year?

Second question.. the reason I haven't stored this years ISA allowance is because I'm waiting for the right time and property to jump on the ladder and own my own place. Having money locked into an account and inaccessible is not an option right now. I have a ICICI HiSave account which I have the majority of my savings in.. but as you know the current rate of 4.55% could drop again now. I'm thinking of putting some of it in a high interest fixed interest account for a year (though it wouldn't be much as I'd like to have money accessible) or drip feeding into a high interest regular savings account...

I guess I have the following options but I don't know what to do so any advice would be grately appreciated!!

1. Leave the old ISA money where it is until the new financial year hoping that new higher introductry rates will be offered. I could also consider putting next years ISA allowance in there if it has Instant Access.

2. Leave the old ISA money and transfer it in the new financial year and open a regular savings account to drip feed money from the HiSave account.

3. Same asabove only open a fixed rate and term account using someof the money in the HiSave account.

Is anyone else in a similar position - saving for a house deposit and not wanting to 'lock'money away? I really want the best interest rates but they seem to all lock you in so you can't get at it without a penalty.

Thanks kindly and sorry it's so long! :j

Paul_Herring

FurryPaws wrote: »

Should I pluck it out and into a new account just before the end of the financial year or should I leave it in the hope that banks may well be setting up some higher interest rate accounts than what is on offer today since the base rate flatlined to 1.5% ? What do you think? Also, if I were to move it now would I be able to move it again in April or do I have to keep it in that account for a year?

You can transfer (not withdraw and put elsewhere) as many times as you wish (subject to the terms of the account it's in - see below.)

Second question.. the reason I haven't stored this years ISA allowance is because I'm waiting for the right time and property to jump on the ladder and own my own place. Having money locked into an account and inaccessible is not an option right now.

Very few ISA's lock you in - most are instant access.

I'm thinking of putting some of it in a high interest fixed interest account for a year (though it wouldn't be much as I'd like to have money accessible) or drip feeding into a high interest regular savings account...

There are 3, 6, and 9 month terms available (or were last time I looked.)