I have simple needs, what is the best ISA for me?

AndyPK

Lloyds classic with VANTAGE is the one.

kkid

AndyPK wrote: »

Santander and Lloyds do pay interest below 3k just not the top rate.
The good thing is that it is not limited to 1 year.
So you shouldn't dismiss it. Open and build the money up.

Not limited to one year?
What do you mean?

AndyPK

The flex direct gives about 5% for the first year only.
Then 1%.

kkid

AndyPK wrote: »

The flex direct gives about 5% for the first year only.
Then 1%.

ooooooohhh... didn't realise that.

Oh well, rates will change after a year anyway so my accounts will be in need of review by then.

Still fantastic for the first year

innovate

ColdIron wrote: »

By George, I think he's got it

(s)he sounds a smart cookie given the speed at which things sink in

kkid wrote: »

This seems way too good to be true. And you know what they say, if something seems too good to be true then it probably is.

You are absolutely right to be very sceptical about what you read on the internet and things that sound too good to be true. On this one, though - - just go through the MSE forum and you will find that plenty of posters (longstanding ones at that) do the FlexDirect stuff. Some of them even report they get interest on more than one (you are allowed 4 but only guaranteed the 12 months 5% on one). You can't be 100% certain that you were told the truth until you try it for yourself.....so what are your risks? Nationwide deposits are covered under the FSCS guarantee up to £85K per person. The 5%-interest thingy is on their web site, the T&Cs are there fore anyone to disect in minutest detail. Longstanding posters on MSE say they did get the interest, several months running now - - so what are your risks? If all the MSE posters are lying, the worst is that you get no interest - - - which is 100% the same as on your HSBC account! So you can't lose anything, can you?

(And remember, I suggested you look at the Halifax Reward as well, for another £60 or £75 a year for you)

kkid wrote: »

Also, just noticed.

This was a complete coincidence, didn't realise until looking over the nationwide website again. The £2500 balance is likely to rise as I earn money from wages etc but the limit on the 5% interest is a balance of £2500. Do I earn 0% interest on anything over £2500 then? In this case is it best to send all of my "overspill" money into their ISA that I mentioned earlier?

Yeah, you are spot on. 0% on anything above £2.5K. You are allowed 4 FDs but only guaranteed the 5% one 1. You could chance it and open a 2nd one in the hope you get the 5% there, too. Or go for a safe 3% with Lloyds etc.

kkid wrote: »

Or should I open a Santander 123 account......
Sorry, just realised that this account requires 2 direct debits.........
Officially ignoring Santander 123 now

DON'T ignore it just because it wants DDs.....have a look at post 1 in https://forums.moneysavingexpert.com/discussion/4168667

BUT please remember the 123 costs £2 a month, and it does not pay a penny interest for balances below £1K. You would most likely do better with a Lloyds Vantage (or a 2nd FlexDirect if you are feeling brave)

AndyPK

If it were me I would open a flex direct.
Then open their Isa but don't put ANYTHING in it. ( you get a good rate)

In march review things and see if you want to put some spare money in it.

kkid

innovate wrote: »

You should also look to adding a Halifax Reward account to your money-shuffle, btw. You have enough cash to make it worth your while. If you get it right, you can collect £60 a year (or £75, if you give them an R85).

Just looked at the Halifax, won't be able to use this as 2 direct debits are required to get the £5 deal that you mentioned. I won't have these necassarily.

innovate

AndyPK wrote: »

If it were me I would open a flex direct.
Then open their Isa but don't put ANYTHING in it. ( you get a good rate)

In march review things and see if you want to put some spare money in it.

Good idea. Could even put the monthly overspill (interest) from the FlexDirect into the Flexclusive ISA, rather than faffing about with another FD or other current accounts

(Though I would still definitely also definitely include the Halifax Reward in my scheme :cool: - - - but that's just a by-the-by)

innovate

kkid wrote: »

Just looked at the Halifax, won't be able to use this as 2 direct debits are required to get the £5 deal that you mentioned. I won't have these necassarily.

Why can't you set up 2 DDs, say for £1 each a month, into some savings accounts you open? Tesco is easy, the 2nd one might need a bit more effort but the list is long....you could try Newcastle Building Society (Sir Bobby Robson Foundation Fund). They take DDs.

EDIT: If you have many accounts, you want to be able to manage them properly. A home-made spreadsheet might be all you need. I personally use Microsoft Money which is no longer available from Microsoft but you can still get it from Amazon. Run a virus checker though before you use it.

AndyPK

I really need to do something with a Halifax.

I had £700 in there account earning 0% for decades.

How can I make the most of this?