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ISA versus monthly savings
pothole50
Posts: 244 Forumite
I have £3000 in a Barclays cash ISA and was not happy when all I got was £3.00 interest, I also have a direct debit to save £50 into this ISA, I am no financial wizard that why I am here, but would it be better for me to put £50 a month into the Barclay monthly savings paying 3,25% rather than this ISA. Having also read replies on here about ISA transfers I enquired and the woman in Barclays said I could not transfer her ISA without paying penelties, well than does not sound right to me.
pothole
pothole
0
Comments
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Firstly find the penalty for transferring the ISA. (There may indeed be no penalty as customer service may have got it wrong). Is this £3 interest over a whole year?
Lets say the penalty for transfering is a whole years interest, in which case you may as well transfer it as you would only be losing out on £3. Nationwide and A&L currently offer 2.75% ISA's that allow transfers in.
Is your wife a taxpayer? If so she would be better off paying the £50 into the new ISA at 2.75%.
If she is a taxpayer the actual rate she will get (assuming not a higher rate tax payer) from the 3.25% Barclays account is 2.6% - so you can see she would get more depositing into the ISA. Hope that makes some sense!0
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