Any reason to keep my savings in my ISA (Nationwide)?

trrk

I am currently saving for a gap year/career break (departing January 2010) and have my savings divided between a cash ISA and a Esavings account with Nationwide.

I've just noticed net interest on the Esavings is 0.36 % (gross 0.45 %) and gross interest on the ISA is 0.35%.

Am I right in thinking there is no reason to keep my money in the ISA as the Esavings would earn the same amount of interest? The Nationwide ISA seems a waste of space but with only 4 months to go it is too late for me to look for a better deal elsewhere.

Here is a link to the Nationwide interest rates
https://www.nationwide.co.uk/savings/all_accounts/all_accounts.htm?source=nationwide&campaign=interestrates&execution=savings

rb10

Are you likely to be using all the money that you've got in both the E-savings and ISA during your gap year?

If so, find the highest paying account you can (not necessarily an ISA), and put all the money in there. You probably won't find an account with a good interest rate and instant access at Nationwide, but you should be able to get in the region of 3% gross elsewhere.

trrk

I will be spending most of the money in the savings account during the gap year but want to have access to all of it in case of emergencies (hence I don't think I'll leave any in the ISA).

The reason for the Nationwide Esavings is that it is linked to my Nationwide flexaccount - the account I will be using while travelling. I could transfer all of it to another bank for the next 4 months but am not sure if it's worth it. The flexaccount was my initial reason for signing up with Nationwide and at the time the interest rate on the ISA was quite good (but not anymore!)

Baldur

trrk wrote: »

The reason for the Nationwide Esavings is that it is linked to my Nationwide flexaccount - the account I will be using while travelling. I could transfer all of it to another bank for the next 4 months but am not sure if it's worth it. The flexaccount was my initial reason for signing up with Nationwide and at the time the interest rate on the ISA was quite good (but not anymore!)

I would transfer both to better paying account(s). You only need £1 or so in your e-Savings a/c to keep it active.

Then simply transfer funds from your other account(s) into your Flex account (and/or e-Savings) as required for ATM withdrawals, etc.

That's what I tend to do when I am abroad for any length of time.