Isa regular saver

thruppence

I would to dripfeed £470\month into Nottingham Building Society paying 5% interest. Problem - branch based account - I don't live near a branch. Any recommendations for similar account please.

realaledrinker

Skipton 3.25%
Principality 4%

innovate

Check out Kazza's list

mgarl10024

The Nottingham Building Society seems by far the best at 5%, with the others at 4% or under. It's a shame that it's branch only, as like you, I don't live near one.

psychic_teabag

Another option is one of the higher-paying non-ISA regular savers, then transfer the balance to the ISA on maturity. A 6% taxable regular saver is only a little less than 5% after basic-rate tax, and an 8% one would beat it.

I think Buckinghamshire BS used to do a reg.saver ISA @ 3.5% - not sure if it's still there. (Just for completeness.)

Ash1982

Ive got the notts BS account and you have to open it in a branch but once you have done you CAN send BACS payments to fund it. They go through Natwest and are credited the day after you send the faster payment.

MoneySaverLog

First Direct 8%
HSBC 6%

Use them as regular savers and deposit the proceeds from these two accounts into next years ISA. Still you'd have to put some away this year now though as by the time these regular savers mature you'd be into the new tax year.

innovate

psychic_teabag wrote: »

A 6% taxable regular saver is only a little less than 5% after basic-rate tax, and an 8% one would beat it.

Are you sure? I always thought it's about half the headline rate before tax.

Just used Martin's Regular Saver calculator - entered £300/mth, 8%, 1 year, basic rate tax. That results in £123.62 interest on £3,600, which is roughly 3.43%.

At 6%, the real return according to the calc is after basic tax is only 2.58%.

Am I going wrong somewhere?

EDIT: got it - - you were talking about the headline interest rate, which is the one to compare with the ISA regular saver headline rate, so it's like with like. Martin's calc gives you the actual return.

psychic_teabag

It's better to think of it as the full interest rate on half the final balance, rather than as half the interest rate on the full final balance.

For your example of 300pm at 8%, the £123.62 interest is exactly 6.4% of roughly £1931, which is the average balance over the year.

thenudeone

The Nottingham account CAN be opened by post - see my posts in this thread https://forums.moneysavingexpert.com/discussion/3893373