Is this a good one?

harrisc

Hi - well we have just re-mortgaged to an interest only mortgage and now need to open up either an ISA or a savings account for a regular monthly payment of initially £100 a month increasing to around £250 - £300. We would then withdraw this money yearly and pay off onto our mortgage. Looking around this one seems to be good -

Rate:5.25%
Provider: IPSWICH BS
Name of Account: Regular Saver ISA

What do people think please as we are newbies to this savings/ISA stuff.

Ta Claire

grumbler

It is a good rate for ISA, but read thoroughly . Rate is not fixed and withdrawals are allowed only during 4 weeks after the anniversary.
Lloyds TSB offer now 2-years regular saver with 8% fixed interest that is 6.4% net for a basic rate taxpayer. This is more than you can get with ISA. See the thread on the 'Savings' board.

Zwicky

What is the mortgage rate?
What are the rules for repayment of capital? How often can you make repayments and is there a minimum amount?

The Ipswich Reg saver Isa has a maximum monthly repayment of £250 and they only accept applications from people living in their local region which consists of only 6 postcodes. Do you qualify?

Sillychuckie

If you are just going to withdraw the funds at the end of the year and lose the tax-free status on them anyway (i.e. you do not intend to built up your ISA, tax free portfolio over the coming years), a regular saver is by far the better option.

A&L still offer 10% on theirs...
The next best is Lloyds TSB offering 8%.

With lloyds, if you must, you can even miss months off without saving there, so it would allow you the most flexibility. You can also withdraw if you need to with no penalty etc.
Even if you are a tax payer, it will still beat the ISA.