Money advice?

theronkinator

Right atm, this is my situation
Halifax ISA Saver - £3,500 (0.10% [was 5.5% when I took it out years ago])
Halifax Student Current Account - £2,200 (0.10% afaik)
Halifax Current Account - £2,700 (zero interest)
Premium Bonds - £2300

Total: £10700

Basically I'd like to keep £2000 'free' so in my student/current accounts. Also don't want to take away from the premium bonds either.
Apart from that I'm flexible, I'm going to switch my Halifax ISA to the ISA Direct Reward that I've just seen on here @ 2.8%, apart from that any recommendations, or just dump it all in the ISA?
Thanks.

*edit* Oh yeah I know this limits options, but it would be nice to keep it all with halifax still.

Cautious_Investor_3

Hi

A search of the best buy tables at the usual sources such as Moneyfacts, Moneysupermarket etc will help you.

Also there is a firm who will do the hard work for you:

http://www.!!!!!!.uk/free-services/cash-management/

Definitely have a thik about the premium bonds though, the rates are not at all attractive.

I hope this helps.

The Cautious Investor

xrjtg

Do you have a 0% overdraft on your current account? If you count that towards your £2000 float you could put more into better paying accounts. You might also want to reconsider having £2000 in a current account: you can transfer out of most savings accounts instantly and spend the money the same day. Two more questions: do you pay income tax? And why the attachment to Premium Bonds?

theronkinator

xrjtg wrote: »

Do you have a 0% overdraft on your current account? If you count that towards your £2000 float you could put more into better paying accounts. You might also want to reconsider having £2000 in a current account: you can transfer out of most savings accounts instantly and spend the money the same day. Two more questions: do you pay income tax? And why the attachment to Premium Bonds?

The student account has a £500 0% overdraft yes. Don't havea job/income so nope don't pay income tax. Premium bonds I like just because it's a less boring option (won £125 so far this year, so that's already equiv to a decent interest rate). Also have £500 in shares I'm playing with to. I guess I could go down to £1000 in the accounts as a float instead as long as I can get to the rest fairly quickly. Halifax is the main thing/obstacle as I know it all inside and out and can manage it all easily.


For now I'm about to go to town, is it worth me switching my ISA to this one whilst I'm there:
https://forums.moneysavingexpert.com/discussion/2743342

xrjtg

That's the best instant access rate available now if you don't bank with Santander.

The other option is not to use an ISA at all and just register your accounts to receive interest gross (without tax taken off). The only downside to this is the loss of the allowance if you don't use it, but unless you expect to come into a few thousand pounds any time soon this is not a huge issue in your case. You could then get 4% in a Lloyds Vantage current account, which could be worth an extra £75 over the year if you're prepared to move £1000 in and out each month (this satisfies one of the conditions of holding the account).

It depends what the convenience is worth to you.

theronkinator

I think the simplest and most convenient option for me is to move over to that ISA and dump all the spare money into that, will go do it today. Thanks guys.

Cautious_Investor wrote: »

Hi

A search of the best buy tables at the usual sources such as Moneyfacts, Moneysupermarket etc will help you.

Also there is a firm who will do the hard work for you:

http://www.!!!!!!.uk/free-services/cash-management/

Definitely have a thik about the premium bonds though, the rates are not at all attractive.

I hope this helps.

The Cautious Investor

I've filled out there questionaire aswell, thanks.

psychic_teabag

I assume you are aware that the ISA limit is not the maximum balance, but the max you can pay in during the year. So you can't just move money in and out as you can with a savings account.

If you have a reward current account, you'll want to keep some instant-access cash so you can move it in and out of the current account each month to earn the reward - £60/year in addition to the interest from whereever it lives for the rest of the time. You can't take that from the ISA (well, only 5 times). Having a reward current account also increases the interest you get on your halifax isa.

theronkinator

Ok, I'll hold off going today and have a think about that. And yes I'm aware of the ISA limits (had it for about 3 years).

theronkinator

Right, been in today. Now have a Reward Current Account so get £5 a month (will set up a standing order to rotate the £1000). And have change to the ISA direct reward (2.8%, upto 3% when coupled with my Reward current account, up from the awful 0.5% of my current ISA).
So looking at over £225 a year now which is pretty nice. Cheers guys.