Savings Account Question

BingoMum

Hi I have money saved in a cahoot savings account which pays me 5.3% Gross, would this be better in a mini ISA? even after tax the account seems to pay about the same as most isa's so is it worth the hassle of setting an isa up?

Thanks
BM

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hansi

5.3% gross would give you 4.24% net. The best ISA at present would pay you a little over 5% so the ISA would be better. For the 5% you would probably have to lock up your money for a year so make sure first you won't need it in an emergency.

Kazza242

BingoMum wrote:

Hi I have money saved in a cahoot savings account which pays me 5.3% Gross, would this be better in a mini ISA? even after tax the account seems to pay about the same as most isa's so is it worth the hassle of setting an isa up?

Do you have the Cahoot Introductory savings account that was available from June-September 2004? If so, the rate was reduced to 5% on 22 March 2006 and will be reduced further to 4.55% for balances up to £50,000, from 28 April 2006.

Even so, I still think it is worth opening a mini cash isa. Why give the taxman a cut out of your interest when you could put it in a savings product that allows you to keep the interest all to yourself. Even if you were a non-taxpayer, I still think a mini cash isa is worth opening, as you may become a tax payer in future.

BingoMum

Hi thanks for replies, funnily enough got an email this morning

"I am writing to let you know that we will be changing the rate on your cahoot savings account to 4.55% AER on 28 April 2006"

So looks like it is time to change!

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