Newbie help, ISA or investment?

odb_2

Hello, newbie here so sorry if this type of question has been asked a million times before.

Basically I have £2k sitting in a savings account with Halifax, earning just 2.25% PA. This money is basically my emergency reserve fund, used if I suddenly need some cash in an emergency. However I'm not happy with it just sitting there and I think I must be able to make it 'work' for me.

Should I put it into an ISA, if so which type, Halifax have a few to choose from, do you only get the interest paid yearly on these? Its not likely I will need the money but I cannot be 100% sure so I wouldnt want to tie up more than half of it in an investment lasting longer than 1 year.

I wont be able to add to this fund at present as I've just recently got a Mortgage own my own.

Any advice would be greatly appreciated.

grumbler

odb wrote:

Basically I have £2k sitting in a savings account with Halifax, earning just 2.25% PA. This money is basically my emergency reserve fund, used if I suddenly need some cash in an emergency. However I'm not happy with it just sitting there and I think I must be able to make it 'work' for me.

Many instant access saving accounts (not ISAs) pay now 5%+.

Should I put it into an ISA, if so which type, Halifax have a few to choose from,

For an emergency fund you need ISA with some flexibility. Halifax ISA Saver Direct with 5% is one of the best now.

do you only get the interest paid yearly on these?

How interest is paid doesn't make any difference for you.

Cee

The interest is paid at the end of the tax year, the Halifax Isa Direct allows you to fund it for £3k this year the funds can be transferred into an easy access account of your choice and will be with you in 2 hours of the telephone request.

Although there are many savings account boasting interest rates of 5%aer, with an isa you get it tax free, not the net if you pay tax.