Best way to save?

JKPoppy

Hello all

I'd like to ask your advice.

I'm unsure what’s best to do with my savings. Currently I have two ISAs and one savings account that had a good rate but that has just expired. The rate on the two ISAs is pretty dire. So on all three saving accounts the rates are low. I haven’t got a great deal of money in them.

Do I open a new ISA and transfer all savings into that account, or do I open a new ISA and keep my old ISAs open too?

The first option seems to make most sense, but as I'm not financially minded I’m not sure if I would be making a mistake by closing the existing ISAs!

Any help would be greatly received! Thanks

Rafter

Hi JK,

It depends on how much you have overall really.

If you close ISA's then you lose the tax free status built up on them. However, if you 'transfer' the ISAs you can keep allowances from previous years and build up a large tax free pool of savings without being stuck in poor interest rate accounts.

The next consideration is how long you are prepared to lock your money away for and what you think will happen to the Bank of England base rate.

If you think it will stay flat, a longer term fixed rate might be better for you. If you think it will rise, a variable ISA or savings accounts would be the winner.

Your best starting point are the links at the top of this thread to the top accounts which will also show you which isas accept transfers and which ones are for your 2012/2013 tax year deposits only.

Good luck

R.

JKPoppy

Hi Rafter,
Thanks for your guidance; it's really helpful. I have around 30K and am not afraid to lock away but only short term. Will check out best options now.
bw
JKPoppy