Savings and Piggybanking

drezha

Hi all,

I've managed to clear out my credit card (bar the student loan but that'll slowly go down now) thanks to the advice on this site and some hard work and I've even managed to get myself a new bike after paying off my debts to save me the bus fare to work each day.:)

Anyhow, now it's time to turn my head to saving properly - in the past I've used an ISA to drop money into for piggybanking - I would then remove it to pay off car insurance, car tax and other annual large bills like that. I have a small amount (sub £500) that is currently in a savings account (3.1%) compared to my ISA at 2.5%. I can't afford much savings yet (I'm cutting down on monthly spending still but currently spending £45 a month paying off my car and washing machine - interest free payments so I'm in no hurry to finish those) so was wondering if the best bet was to put the current savings into the ISA and use that (even though I won't be able to fill the ISA allowance) and put the piggybank money into the savings account or keep it as it is currently? The piggybank money is ~£150 a month.

I know I'd get more by dumping the savings and piggybanking into the ISA together but I'd like to keep them separate as I think I might have a tendency to spend the savings if they were in the same account.
So in summary
Savings - £25-50 a month
Money for annual payments ~£150 a month
Put which one into which account?

Thanks for all the help! And thanks in advance for any replies.