Oap + isa. Any point?

ampersand

I note Martin's latest urgent insistence on ISA input.

My income is solely OAP[State Pension+Pension Credit] plus sporadic earnings via fairs. I am not a tax-payer, but have been saving small amounts.

Despite all the gripes with this Bank or that, my local NatWest have been excellent. I have a basic current a/c and an e-a/c with which I load every possible penny for greater interest, as I can do an instant tfr for any sum back to the current a/c if necessary.

Is there any point in my taking up an isa? I would be unlikely to have the max. p.a. amt saved year on year, but could put £1k into a fixed e-isa if it makes a difference.

I have a couple of projects to save for this year. Would withdrawing the money from a non-fixed isa incur penalties?

Any advice would be welcome - thankyou.

badger09

In your circumstances, and unless you are likely to become a taxpayer in the future, there is no particular benefit in opening an ISA.

You should look for the highest interest rate you can find, and I doubt very much that it is what you are getting on your accounts with NatWest.

Have a look on the main Savings & Interest forum - look at Best Regular Savers, Best Instant Access accounts. Most of the best at the moment are current accounts (Nationwide Flexdirect, Santander 123, LTSB & BoS Vantage)

To answer your question about withdrawing from a non fixed rate ISA - there would be no penalty.

kidmugsy

badger09 wrote: »

You should look for the highest interest rate you can find

I disagree: it's perfectly reasonable to look for some combination of interest and convenience that suits.

ampersand

As I thought badger09 - thankyou for your non-judgmental reply.