Santander isa or esaver and current ac

matty17r

Was all set to open up my isa tomorrow when see interest rate has dropped to 2per cent. I am a non tax payer so would it be wise to take some money out of my isa and put it in my esaver which is paying 3.3 per cent until june and also put about 19k in my current ac to take advantage of the 3 percent rate? i realise it is not wise to lose my isa allowance for previous years but I am also losing interest by not putting in to these accounts and sticking with 2 per cent? Any advice greatly appreciated!

jamesd

What matters for those sorts of amounts is the interest rate you end up with. The annual allowance is high enough for you to move the money back into the ISA fairly quickly if that becomes best.

If this is long term money you should also consider investing within a stocks and shares ISA. You can get more than 3.3% that way but you do need to be prepared to accept up and down movements in the capital value.