Use money from Halifax or LTSB to fund ISA?

Wammer

At the moment the OH and I both have 3 LTSB Classic accounts with Vantage with £5000 in each one, total £30000, earning 3%.

We also have a joint Halifax Web Saver Reward with £10000 which is currently earning 2.8% + 0.2% Reward bonus. The reward period ends on 3 April when it will drop to 0.15%.

I obviously need a new home for the funds in the Halifax account.

I was considering the Santander Major ISA 2 year fixed at 4%. However I am now wondering if I would be better with the Halifax 2 year fixed ISA at 3.7%. The reason for this is that a Halifax ISA would be eligible for their prize draw. I have no other savings with the Halifax.

I also have a Santander Flexible ISA at 3.3% which I could transfer to the Major 4% ISA.

I have been using the Halifax WSR for savings and major purchases over the year so ideally would like an account I could use in a similar way. I do realise that an ISA wouldn't do this.

Any suggestions as I am getting very confused trying to work out what would be best and would like a fresh pair of eyes to point out what I can't see.

Thanks.

opinions4u

Santander clearly wins on rate for the ISA. So this is a service issue - are you prepared to take the risk with our Spanish friends on that one?

As for where the funds should come from:

Rate wise, Web Saver Reward pays slightly less than Vantage, so it seems to make sense to take it from there. If you can leave £5k in Halifax you qualify for the Prize Draw. But that would be a side issue unless rates and service are closely balanced.

If the two year ISA options appeal, Lloyds TSB appear to have an identical rate but slightly more flexible product - allowing additional deposits during the term subject to ISA limits.

Perhaps a compromise of Halifax for this tax year (Prize Draw) and Lloyds TSB for next tax year (6th April 2012 onwards) would give you the best of both worlds on rate, flexibility and Prize Draw?

Oh, and make sure you get that Web Saver Reward changed to Online Saver as soon as it drops off bonus.

Wammer

Thanks.

I have already maxed this year's ISA so it is really 2012/2013 I am looking to fund.

I have since checked and all the ISA's I currently hold are fixed rate so not suitable for transferring.

The Halifax Web Saver Reward is a joint account hence there is £10000 in it to cover us both.

If we only had £5000 in a Halifax joint account, would that be regarded as £2500 each and therefore not eligible for the prize draw?

Will look at the Online Saver later, work beckons.

opinions4u

Joint accounts link

How do funds held in joint savings accounts count towards the £5,000 savings balance requirement?
If funds are held in joint accounts, then the balance will be split equally between each account holder when calculating each account
holder's qualifying balance. For example, where there are two joint account holders this will be 50%. Each account holder will need to register separately if you both want the chance to win.

psychic_teabag

Wammer wrote: »

At the moment the OH and I both have 3 LTSB Classic accounts with Vantage with £5000 in each one, total £30000, earning 3%.

...

I have been using the Halifax WSR for savings and major purchases over the year so ideally would like an account I could use in a similar way. I do realise that an ISA wouldn't do this.

Could you use your vantage accounts for that role ? We had the vantage accounts maxed out when they were offering 4%, but since then, we allow the balances to fluctuate between £3k and £5k - can get slightly better instant-access rate elsewhere, but appreciate the current-account facilities. Little effort to shuffle money between the accounts to keep the balances in range.

Wammer

psychic_teabag wrote: »

Could you use your vantage accounts for that role ? We had the vantage accounts maxed out when they were offering 4%, but since then, we allow the balances to fluctuate between £3k and £5k - can get slightly better instant-access rate elsewhere, but appreciate the current-account facilities. Little effort to shuffle money between the accounts to keep the balances in range.

Thanks both.

I use the Nationwide as my main account as I've had it over 20 years, but as it doesn't pay interest, I like to keep any surplus in an online account with easy access which pays interest.

I realise the Vantage accounts fit this bill, but I tend to use them as savings accounts with the max £5000 in each and transfer the interest out every month.

It looks like the Halifax Online Saver is what I am looking for. I had actually made a note of it before it was suggested on here, but was slight put off by the fact that it is only 2.8% for 12 months with a 2.7% bonus. I guess it's not really a problem to have to look again in a year's time.

As I want to keep £10000 in the Halifax to qualify for the prize draw, I guess I should be funding next year's ISA's from LTSB. That should leave each Vantage account with just over £3000 each which is enough to get the 3% rate.