Savings

abbie_4

I have £10,000 sitting in my very low interest savings account - can you suggest an account where this money might earn me a high interest rate? I would like to have access to it if need be.

Cypher

Ice Save 5.45%

Are you a Tax payer ?

I know you said you wanted access to it but I would also probably stick £3000 into an ISA if you haven't already, NS&I Direct ISA 5.55% and leave the remain £7000 the IceSave Account. I would probably look at another ISA in April as well.

The ISA money is available to withdraw penalty free minimum withdrawal on this particular one is £250, An ISA is a use it or loose it tax free savings scheme you might as well use it and withdraw it if needed as never use it and if you don't withdraw it it will remain Tax Free every year so you may as well look at using your ISA allowance anyway.

djohn2002uk

Why open "another" ISA?
What is wrong with putting another £3000 in the same ISA after April?
I fail to appreciate the reasoning behind opening more than one ISA, if you have chosen the best interest rate to start with, then keep topping it up each year unless that one starts lagging behind. Then if there are penalty charges for moving it, start another, if it's still the best then keep loading it.
If you open another one, you can still only invest £3000 per year shared between however many you have.

meanmachine_2

djohn2002uk wrote:

Why open "another" ISA?
What is wrong with putting another £3000 in the same ISA after April?
I fail to appreciate the reasoning behind opening more than one ISA, .

Er, because the NS&I one has a £3000 limit?!!

Simple really.

Graham_Devon

meanmachine wrote:

Er, because the NS&I one has a £3000 limit?!!

Simple really.

All Cash ISA's have a £3000 limit, the £3000 limit is YOUR personal limit in any financial year.

Cypher

yes badly worded on my part sorry. I did mean as it April you can open another ISA "or add a further £3000 to that one" but in April it would be worth shopping around to find the best deal at that time.