We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
ISA or Santander Saver
az012
Posts: 2 Newbie
I have more than £5000 to put into savings, and already have a First Direct ISA which pays 3% interest until November 2010.
I could fill up my ISA allocation immediately but recently read on this website about the Santander saver for first time buyers. This pays 5% and you can deposit up to £5000 and then regular savings of up to £300 a month. I am a basic rate taxpayer so this would pay 4%.
Is there any reason why I would not put my money into this account rather than into my ISA? The only reason I can think of is the ongoing tax benefits of the ISA beyond this year and keeping that tax free amount for next tax year too.
However, I don't see any reason why I could withdraw my money from Santander in March 2011 to put into my ISA and in any case I expect to use all the money I have in my ISA thus far plus my £5000 for a house deposit later in 2011.
Can anyone tell me if there is a flaw in my reasoning? Thanks
I could fill up my ISA allocation immediately but recently read on this website about the Santander saver for first time buyers. This pays 5% and you can deposit up to £5000 and then regular savings of up to £300 a month. I am a basic rate taxpayer so this would pay 4%.
Is there any reason why I would not put my money into this account rather than into my ISA? The only reason I can think of is the ongoing tax benefits of the ISA beyond this year and keeping that tax free amount for next tax year too.
However, I don't see any reason why I could withdraw my money from Santander in March 2011 to put into my ISA and in any case I expect to use all the money I have in my ISA thus far plus my £5000 for a house deposit later in 2011.
Can anyone tell me if there is a flaw in my reasoning? Thanks
0
Comments
-
I'd say you've got it about right in terms of the return on your investment providing the additional £300 pm of regular savings will keep you fully invested.Warning: In the kingdom of the blind, the one-eyed man is king.0
This discussion has been closed.
Categories
- All Categories
- 346.5K Banking & Borrowing
- 251.3K Reduce Debt & Boost Income
- 451.3K Spending & Discounts
- 238.7K Work, Benefits & Business
- 614.1K Mortgages, Homes & Bills
- 174.7K Life & Family
- 251.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards