Is Santander isa worth it?

RoxRoxBling

Hi all.. looking for some money saving advice, in regards to interest

My Santander cash isa is 2.5% This will be the account I put monthly savings in.

Now I'm looking to open and transfer at least 10k into the 2 year fixed. Which is 2.8%

Now how much of a difference does about 0.3% make to interest?

saintalan

Well 0.3% on £10k would be £30 per year.

You could make that £50 by opening a 123 current a/c before you open the 2 year fixed.

Alan

ColdIron

Are you serious?

RoxRoxBling

saintalan wrote: »

Well 0.3% on £10k would be £30 per year.

You could make that £50 by opening a 123 current a/c before you open the 2 year fixed.

Alan

Thanks. . I'm sure I read that current account has to have at least 3k in??
But tbf, a lot better than regular saving accounts.

RoxRoxBling

ColdIron wrote: »

Are you serious?

I know daft question. But.....

gkerr4

you'd need to have £20k in the 1-2-3 account to make it worthwhile.

AND pay in £500 / month

AND have at least two direct debits from it. (which you also earn cash back on)

so not easy, but the best interest paying savings account (up to 20k) is a current account.

I've just set one, well, my wife has, and we will keep it close to £20k as possible - i transfer the minimum into it on the 1st of the month, it has 5 dd's setup and at the end of the month i will transfer anything above £20k back out to a regular savings account. Bit of effort, but with the cashback it should be worth £694 a year to us.

Mickygg

In these very low interest times it depends if you want to tie money up at such a low rate. I chose not to as I think in a year rates may be a bit better when the government lending cheap money to banks dries up. Just my opinion though, some people think interest rates could get worse!!

RoxRoxBling

Mickygg wrote: »

In these very low interest times it depends if you want to tie money up at such a low rate. I chose not to as I think in a year rates may be a bit better when the government lending cheap money to banks dries up. Just my opinion though, some people think interest rates could get worse!!

I think you're right. even if rates do get better, No chance of them being as good as they were 2-3 years ago.

Give my hard earned cash to the bank to do what they please and I get little back.. story of the economy