Internet Fixed Rate Bond+2 Fixed Rate ISAs

MavisS

After closing an income saver account which only gave me £16 this month I have £30000. I need advice on whether to put all the £30000 in the internet Fixed Year Bond, or put in £22800 in the internet bond and £7200 in two Fixed Rate ISAs (one each for my husband and myself). The amount I would save on £30000 would be the same as saving £22800 and the interest off the two ISAs.

I know the advice usually is put what you can in ISAs first and then get the best after that. Please can anyone tell me what the benefit is in my case. I don't really want to miss my ISA chance this year. As you will gather I have no experience in investing and am trying to maxise our savings, we are both retired. Will much appreciate your help.

GlasWolf

If you and your husband are non-taxpayers and will definitely not be paying tax again then there's no benefit to an ISA over a normal savings account. Check your personal allowances if you're not sure. Other than that, just remember that fixed term bonds usually penalise heavily for withdrawing before the term is up, so don't lock anything away that you may need. If in doubt, split it between a fixed term and a normal savings account so you have some emergency money if required.

Nick_C

Assuming you are a basic rate tax payer, if you put £7200 into two Barclays ISAs at 3.6%, its equivalent to 4.5% before tax.

With the rest, consider opening 2 regular saver account with Scottish Building Society @ 4%, and putting £1000 a month into each.