5% monthly saver or switch to an ISA

Amme

Hi,

I currently put £500 a month into a 5% monthly saver, I was wondering if come the new tax year I would be better putting it into an ISA, i dont have any ISAs from any previous years?

Thanks

opinions4u

Save in the monthly saver and then put the maturity proceeds in to a best buy cash ISA.

atush

I agree, fill next years ISA with this years RS. Wash and repeat.

indie80

You're getting 5% on a monthly savings account and can pay in £500 pcm, who's that with??

What are the terms of the account? Some of them run out after a year and revert to the standard savings account paying rubbish interest.

To match that with an ISA assuming you're paying basic rate tax, you'd need to get an interest rate of 4% from the ISA. (See Savings|Regular Savings page - it won't let me post links)

So unless you put it into a fixed term ISA where it's locked away for a number of years you're unlikely to get more interest than you are at the minute.

Amme

indie80 wrote: »

You're getting 5% on a monthly savings account and can pay in £500 pcm, who's that with??

What are the terms of the account? Some of them run out after a year and revert to the standard savings account paying rubbish interest.

To match that with an ISA assuming you're paying basic rate tax, you'd need to get an interest rate of 4% from the ISA. (See Savings|Regular Savings page - it won't let me post links)

So unless you put it into a fixed term ISA where it's locked away for a number of years you're unlikely to get more interest than you are at the minute.

It's with Cheshire BS, Platinum monthly saver, fixed for 12 months, allowed to miss 1 payment & 1 withdrawal during the term.
Open in branch only.

Cyrus

Maybe think about going for the first direct regular saver at 8%. You can only put a max of 300 in and you need their 1st current account aswell, the 1st account is meant to have a monthly fee of £10 but costs nothing if you open an everyday e-saver(min deposit £1).

Amme

Cyrus wrote: »

Maybe think about going for the first direct regular saver at 8%. You can only put a max of 300 in and you need their 1st current account aswell, the 1st account is meant to have a monthly fee of £10 but costs nothing if you open an everyday e-saver(min deposit £1).

Trouble with First Direct is you need to put £1500 a month into the current account & I don't earn enough to be able to do that.

Thanks anyway.

innovate

Amme wrote: »

Trouble with First Direct is you need to put £1500 a month into the current account & I don't earn enough to be able to do that.

Thanks anyway.

You don't have to pay in the 1.5K in one lump. You could, for instance, have a standing order that deposits £300 into your FD account, then another SO which sends the £300 back to where it came from. Repeat another 4 times, and you have your £1.5K done.

Also earn £100 on the way for opening the FD account.

Cyrus

Amme wrote: »

Trouble with First Direct is you need to put £1500 a month into the current account & I don't earn enough to be able to do that.

Thanks anyway.

I thought that too but then was told on here that you can open the 1st Current Account (the one that you need to put £1500 in a month and the one you need to open the regular saver) then open an everyday e-saver which means the £10 fee that you'd get if you didn't pay the £1500 is waived. Just stick a quid in the e-saver and then open the regular saver.
I did it last night, no problem. Hope that all makes sense.