NEW ISA 5.5% vs savings account.

Inf0war

Hi

what is likely to yeald better return on investment a new http://www.bristol-west.co.uk/Savings/Branchaccounts.asp ISA at 5.5% or Alliance and lester 5.35% over one year?

lipidicman

5.5% gross vs 5.35% less tax (assuming you are a taxpayer), hmmm let me think!

Inf0war

lipidicman wrote:

5.5% gross vs 5.35% less tax (assuming you are a taxpayer), hmmm let me think!

no am a student

Milarky

This is limited to £3000 and therefore - like the First Direct ISA offer at 6.25% until 6th October - not offering a real alternative to ISA savings already built up.

What is needed is here geniune competition on rates - the abilty to place ISA savings in any account and claim the interest gross - not just with those number of accounts tagged 'ISA'

lipidicman

Yes milarky, that is true - we are always told that the ISA bit is just a wrapper!

And to the original poster, this might wipe that smilie off your post: the very fact that you are a student tells me you will very likely become a taxpayer in the near future. So lock that money up from the taxman while you can. I started my ISAs whilst I was a student and when I started paying tax I had a big chunk of my savings locked away from tax. Nobody tells you that though. Also 5.5 is still better than 5.35 even if you dont pay tax - so what are you waiting for!