£5000 to save but which account?

Snunn1

Hello everyone,

I have £5000 in a Halifax Instant Saver account which I want to move to another account. The plan is to fill up my newly opened Yorkshire BS mini cash ISA with this money at £250 per month for the next couple of years whilst I pay off my credit card debt with money from my salary. I find that I'm overwhelmed with options as far as a straight forward savings account goes, could anyone give me some details on accounts I could look at with a good rate? It doesn't need to be a regular saver or anything like that, I just need somewhere to stash my cash!

Thanks
Stew

missile

Would it not make more sense to use the £5K to pay off credit card debt?

chesky369

Yes, have you thought of calculating how much a couple of years will cost in interest on your credit card? You might get a shock.

james3333

surely he has switched this CC debt to interest free so the 5k will be making him cash whilst he pays off his CC monthly?

Snunn1

missile wrote: »

Would it not make more sense to use the £5K to pay off credit card debt?

Yep, already done this, I've got 0% interest deals on both of my credit cards and worked out that everything will be paid off in 9 months.

mleonard79

Snunn1 wrote: »

The plan is to fill up my newly opened Yorkshire BS mini cash ISA with this money at £250 per month for the next couple of years whilst I pay off my credit card debt with money from my salary.

Hi Stew,

Is there a reason why you only want to put £250 a month into the ISA and not simply transfer the whole of this year's £3k allowance to it straightaway in order to maximize your tax-free interest?

I'm overwhelmed with options as far as a straight forward savings account goes, could anyone give me some details on accounts I could look at with a good rate? It doesn't need to be a regular saver or anything like that, I just need somewhere to stash my cash!

If you're just looking for straight-forward instant access accounts Icesave at 5.7% is the best at the moment - read Martin's article HERE for more info.

Regards

Michelle

Snunn1

mleonard79 wrote: »

Hi Stew,

Is there a reason why you only want to put £250 a month into the ISA and not simply transfer the whole of this year's £3k allowance to it straightaway in order to maximize your tax-free interest?

Thats a good point, I hadn't thought that far ahead to be honest. Looks like I should really be looking at a regular saver account now instead. Thanks for the link as well, Michelle!