Isa Or Regular Saver?

ruth_3

I need some advice as a non taxpayer where is the best place for me to invest my money for the optimum return Where will I make the most interest? I was shocked to discover that my regular saver account only made half as much interest as my ISA. I am looking for instant access and a good interest rate should I consider a variable savings rate and if so what are the benefits?

grumbler

Welcome

ruth wrote:

..I was shocked to discover that my regular saver account only made half as much interest as my ISA...

You are wrong. Read this DISCUSSION.

ruth wrote:

I need some advice as a non taxpayer where is the best place for me to invest my money for the optimum return Where will I make the most interest? ... I am looking for instant access and a good interest rate should I consider a variable savings rate and if so what are the benefits?

Raead SAVINGS section, ‘Savings Fountain’ article and corresponding DISCUSSION

I believe the best easy-access saving rate is 5.35% at A&L at the moment.

halcyon_drift

the amount of money you can put in either is generally limited to £3000. At the moment i currently have both. if its instant access you are looking for the regular saver account wont be much use as it relies on the money being in the account for 1 year, even if it is put in incrementally. In which case, i would have to recommend the isa. i did a quick (rough) calc, using the following assumptions:
1. you are non tax payer
2. you are drip feeding the reg saver account from a savings account
3. you are getting the best interests rates available
the results were that you would get approximately £150 after one year from either account, although remember the isa can be instant access.

personally i try to max out my isa allowance each year, primarily due to the fact that i am also a non tax payer at the moment and i dont wont to get taxed on my entire lifes savings when i become a tax payer sometime next year.

Halcyon

Paul_Varjak

grumbler wrote:

Welcome

You are wrong. Read this DISCUSSION.

No, she probably is not wrong grumbler! She was referring to HER savings account, not the best savings accounts on the market!

grumbler

Paul_Varjak wrote:

No, he probably is not wrong grumbler! He was referring to HIS savings account, not the best savings accounts on the market!

I am 99% sure that Ruth means Halifax. This is a common mistake to expect 6%/7% on full £3000 amount (or on maximum final balance).
£3000 in ISA and £3000 in Halifax - easy to compare and to come to a wrong conclusion.

Paul_Varjak

grumbler wrote:

I am 99% sure that Ruth means Halifax. This is a common mistake to expect 6%/7% on full £3000 amount (or on maximum final balance).
£3000 in ISA and £3000 in Halifax - easy to compare and to come to a wrong conclusion.

I agree that people do make this mistake - cannot understand why!

ruth_3

Paul_Varjak wrote:

I agree that people do make this mistake - cannot understand why!

I can- call it mis informed but anyway no excuses!!!

Moving forward I think what you have said is true.

I tried to take advantage of the hailifax regular saver and ISA thinking this was the best deal for me - how wrong was I!!!!

by the sounds of things the A/L 5.35% deal sounds the best savings but as you are a non tax payer as well is there any point to using your ISA allowance or am I being thick and missing the point?

thanks

Paul_Varjak

ruth:

Are you saying that you put money into an ISA and transferred money each month from that ISA (presumably via current account) to the Halifax Regular Saings account?

ruth_3

I put the maximum amount in an ISA and paid the maximum amount of £250 each month from a seperate account to fund the regular saver

grumbler

ruth wrote:

I put the maximum amount in an ISA and paid the maximum amount of £250 each month from a seperate account to fund the regular saver

Ruth,
This was an optimal strategy if the ‘separate account’ paid decent interest about 5% or did not have a big balance. In this case you have no reasons to be ‘shocked’ as you wrote in the original post.

Paul_Varjak

grumbler wrote:

Ruth,
This was an optimal strategy if the ‘separate account’ paid decent interest about 5% or did not have a big balance. In this case you have no reasons to be ‘shocked’ as you wrote in the original post.

Grumbler is correct! I fund my Halifax Regular Saver by moving money out of Halifax Websaver (4.9%) into Halifax Current A/C on one day and then moving it from Current Account to Regular Saver the next day.