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first direct regular saver 8% to be withdrawn

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Comments

  • Bark01
    Bark01 Posts: 892 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    triticale wrote: »
    Regular saver back available at 6%.

    So that's 4.8% after tax? Still better than an ISA?
  • z3phyr04
    z3phyr04 Posts: 185 Forumite
    I'm considering a switch of my current account to First Direct at the minute now that the minimum income has lowered (either that or Nationwide's FlexDirect). I have an existing ISA that I will be transferring and if I can't get a worthwhile easy access I'm considering fixing for a maximum of 2 years on this existing money somewhere.

    However, I will then need a new ISA to pay into for next tax year. Is it worth paying the maximum £300 allowed into one of these regular savings accounts with First Direct each month and saving the rest into an easy access ISA (I originally intended to save £480 per month to use up the full allowance by next April)? The interest rate seems to be good enough to make it worthwhile over sticking everything in an ISA each month even though the rate has dropped to 6%.
  • Vortigern
    Vortigern Posts: 3,306 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    z3phyr04 wrote: »
    Is it worth paying the maximum £300 allowed into one of these regular savings accounts with First Direct each month and saving the rest into an easy access ISA

    If you can get the first direct regular saver started before 5th April, you would be able to transfer the proceeds on maturity into your 2013/14 ISA, assuming that the ISA allows further deposits and is not full.

    ...and then you start another first direct regular saver.
  • itsanne
    itsanne Posts: 5,001 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Bark01 wrote: »
    So that's 4.8% after tax? Still better than an ISA?

    It's only half that for the year when you take account of how the money builds up. Also, anything put into an ISA will have the tax benefit once the interest rates eventually go up.
    . . .I did not speak out

    Then they came for me
    And there was no one left
    To speak out for me..

    Martin Niemoller
  • Gromitt
    Gromitt Posts: 5,063 Forumite
    edited 16 March 2013 at 12:11PM
    itsanne wrote: »
    It's only half that for the year when you take account of how the money builds up. Also, anything put into an ISA will have the tax benefit once the interest rates eventually go up.

    Putting £3600 into a regular saver at £300 per month would in effect be close to that, but putting the £3600 in a decent savings account and drip feeding the regular saver with £300 per month would give you far better results.

    Once the regular saver matures, then put the amount into an ISA. It would be much better than putting £300 per month into an ISA.

    For example, £3600 in an 3% ISA would get you £108/year.
    £3600 in a 3% savings account and drip feeding into a regular saver would get you £50 from the savings account and £116 in the regular saver. After tax: £132.
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