ISA or Gold Savings Account?

ukchriss

I was thinking of opening an
Norwich & Peterborough BS Fixed Rate ISA - 4.30%
Minimum deposit: £3,600.
Fixed for five years from account opening.
http://www.nandp.co.uk/savings/isas/5-year-fixed-rate-cash-isa/


But looking at their site noticed the Gold Savings Account
Invest up to £3,000 over the year into a Gold Savings Account
earn a fantastic 5.00% gross/AER* on your savings
http://www.nandp.co.uk/savings/regular-savings/gold-savings-account/#


Would my money be better off in the Gold Savings Account than the ISA -

Or is there something better?


Thanks

Baldur

ukchriss wrote: »

Would my money be better off in the Gold Savings Account than the ISA

You are comparing two totally different products.

One guarantees a fixed rate on a specific deposit amount for 5 years, the other only guarantees a rate for 1 year, with deposits being restricted to a maximum of £250 per month and requiring you to open a linked current account into which you have to pay £1,000 per month.

blueberrypie

Also worth remembering that Regular Saver type accounts have higher "headline" interest rates, but you can't put the full amount into the account in a lump sum at the beginning of the year, so in effect the actual interest rate is about half of the headline rate. They're a good idea if you are saving regularly (heh, hence the imaginative name of "Regular Saver") but if you want to save a larger amount from the beginning, they're probably not the best product.