Abbey Direct ISA Issue 3

MadSage

I've still got just under 10.5K sitting in a crappy Halifax ISA at 0.5%, and I thought it's about time I moved it elsewhere. I checked a well-known comparison site as I have done before, and the top ISA was Abbey Direct ISA Issue 3 at 3.00%. I don't touch the money at all. I'm a higher rate tax payer (at least for this year), and whatever I save in my ISA will probably go towards my retirement fund (although I'm a long way off needing it at 33), or I may pay another chunk off my mortgage first. This account sounds good to me, but I would be interested to know what other people think. Maybe I could do better?

dunstonh

whatever I save in my ISA will probably go towards my retirement fund (although I'm a long way off needing it at 33)

So why are you using cash for that purpose given the really long timescale?

KingL

You could get better rates if you are prepared to fix for a year or three - have a look at these lists
http://forums.moneysavingexpert.com/showthread.html?t=401374
http://www.moneysavingexpert.com/savings/cash-isa-transfers

MadSage

dunstonh wrote: »

So why are you using cash for that purpose given the really long timescale?

I had no idea what the money was for when I opened an ISA. It was just to take advantage of the tax free interest. Using it towards retirement was just one idea I had for it. Now I have a mortgage to pay (a total of 77K), I'm thinking of putting the whole lot towards that in 18 months when I put a lump sum down, along with the other 20K I'm intending to save elsewhere.

MadSage

KingL wrote: »

You could get better rates if you are prepared to fix for a year or three - have a look at these lists
http://forums.moneysavingexpert.com/showthread.html?t=401374
http://www.moneysavingexpert.com/savings/cash-isa-transfers

Thanks. I see there are some slightly better options there, although I'm not sure I want a fixed rate yet, even for a year. There is a good chance I will withdraw it all in 18 months to pay off some of my mortgage.

glesgaguy_2

Best way to save money is to get your mortgage paid off as quickly as possible, I did it years ago and have managed to save loads ever since:j

MadSage

glesgaguy wrote: »

Best way to save money is to get your mortgage paid off as quickly as possible, I did it years ago and have managed to save loads ever since:j

Yeah, it's really obvious now. That is what I should use my ISA for. I've had a 77K mortgage (not a lot because I paid a 50K deposit) for less than 6 months, and I'm in a 2 year deal, so what I have in my ISA is going to be a massive chunk off that in just over 18 months. I may even reach my original 5 year target instead of the 7 years I was expecting to pay it off in.

Radaday

I was looking at this as well, and wondered if anyone had transferred money from a previous isa to this Abbey one,
how long did it take for the transfer.

I want to move all my ISA from a crappy Halifax 0.50% isa to the 3.00% Abbey