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ISA versus monthly savings

pothole50
pothole50 Posts: 244 Forumite
edited 29 April 2012 at 10:51AM in Savings & investments
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

Comments

  • foofi22
    foofi22 Posts: 2,201 Forumite
    Part of the Furniture 1,000 Posts
    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!
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