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Need some advice, regular saver or ISA or fixed rate?

pamelab21
pamelab21 Posts: 341 Forumite
Part of the Furniture 100 Posts Combo Breaker
edited 15 March 2013 at 10:40PM in Savings & investments
We are currently moving mortgage from a First Direct offset to a fixed rate with Britannia so it's been 5 years since I have had to bother about what to do with our savings.
We currently have about 7k that I moved to FD from an ISA I had, we also have about 4.5k saved which we dip into on and off when we change car, house insurance, car insurance etc. we save a regular amt each month though to ensure these sort of bills are covered and have no plans to change cars in the near future!
My question is though should we be planning to tie up the money into fixed rate ISAs, savings bonds or the First Direct regular saver.
Should we lump some of the 7k money into an Isa now and then more in new tax year and then set up standing order for FD regular saver from the 4.5k pot for the max £300 allowance per month, does this make sense? Is this the best way to do it?
Sorry but am thoroughly confused:think::think::think:
Should add that we just had 2nd child 7 months ago so don't have a lot of free cash to save at the minute, hence what we have won't drastically increase for a while!

Comments

  • fiesta04
    fiesta04 Posts: 516 Forumite
    Really too many questions to give any possible answers.

    Why did you move from Offset Mort to FR Mort?

    If you will need money quickly avoid Reg Savers as they can not usually be accessible until maturity.

    F4
  • xylophone
    xylophone Posts: 45,745 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Play with the calculator? http://www.moneymatterstome.co.uk/interactive-tools/generalinterestcalculator.htm

    The tool gives gross interest. Interest on ISA will be gross regardless of tax status of saver.

    The ISA allowance is "use it or lose it".
    http://www.thisismoney.co.uk/money/saving/index.html
  • pamelab21
    pamelab21 Posts: 341 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    fiesta04 wrote: »
    Really too many questions to give any possible answers.

    Why did you move from Offset Mort to FR Mort?

    If you will need money quickly avoid Reg Savers as they can not usually be accessible until maturity.

    F4

    FD are about to put us onto svr on our offset and to get another offset deal with them with a better rate we no longer meet their criteria for earnings. Therefore moving to Britannia fixed rate with no arrangement fees at 2.79%. But now we have to decide what to do with our earnings.
  • fiesta04
    fiesta04 Posts: 516 Forumite
    So your mortgage is sorted... it seems a good rate.

    To get best return of £7K, Put into easy access a/c, best you can find at mo. Then both open FD Reg Savers for 6%.

    Let us what you decide.

    F4
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