Please help me with my £21k

chelseablue

I have an ISA with Santander with approx £21,000 in it

The rate is going to drop next week so I need to do something with it. But what?

I have an account with Ulster Bank that pays 2.50% that I could put it in (and pay tax on it of course)

Or what ISA rate should I be looking for that matches or betters the 2.50% savings a/c I already have??

Thank you

Mirno

Even if you are worse off with an ISA you may consider wanting to keep it within a cash ISA (not necessarily your current one).
Depending on your intent for this cash (length of time), and your opinion of interest rates - it may still be better off in an ISA.

Once the money stops being in an ISA it can't go back in (except via your yearly allowance which is way less than 21k). So the tax you'd incur in future years when interest rates (may) go up would cost you long term.

Which account is best for any given scenario though - the "Banking and Saving" section is a good place to start.

Mirno

chelseablue

Thank you

Yes I would like to keep it in a ISA for the reasons you describe

Just need to find a good rate that excepts transfers in now!

xylophone

http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

kidmugsy

Remember that you can transfer it in bits if you like, so you could use, say, one instant access ISA plus a fixed term one.

Here's a thought: from an instant access ISA you could withdraw some money every month to pay into one or more regular saver accounts, and then when they mature bung the money back into an ISA and repeat the trick. There are savers around paying 4%, 5%, even 6%.

On another thread xylophone posted this useful link
http://www.money.co.uk/savings-accounts/regular-savings.htm

chelseablue

kidmugsy wrote: »

Remember that you can transfer it in bits if you like, so you could use, say, one instant access ISA plus a fixed term one.

Here's a thought: from an instant access ISA you could withdraw some money every month to pay into one or more regular saver accounts, and then when they mature bung the money back into an ISA and repeat the trick. There are savers around paying 4%, 5%, even 6%.

On another thread xylophone posted this useful link
http://www.money.co.uk/savings-accounts/regular-savings.htm

But if I did that how would I put all the money back into an ISA when they mature? As the allowance is only £5,760

Also I thought you could have only 1 ISA a year? So I couldnt open a instant access and fixed term one could I?

atush

What is the money for? What is your timescale for using it? Or is it your emergency fund?

chelseablue

atush wrote: »

What is the money for? What is your timescale for using it? Or is it your emergency fund?

Id like to move from my flat to a house in 3-5 years so I would like to use it for that

But also if something happened and I needed it to live off for a bit Id like to be able to get at it

chelseablue

Found this ISA that looks quite good:

http://www.cbonline.co.uk/personal/savings/tax-efficient-savings/cash-isa-40-day-notice/

psychic_teabag

chelseablue wrote: »

Also I thought you could have only 1 ISA a year? So I couldnt open a instant access and fixed term one could I?

You can only deposit new money ("subscribe") into one ISA per year. But you can open as many accounts as you like to receive transfers. Just can't split up the current year's money using partial transfers.

Also, one or two providers, including Nationwide and possibly Newcastle BS, allow you to open and subscribe to multiple ISAs - I think the rule is actually one provider per year, rather than one ISA, though most providers impose a rule that it's one ISA. Or maybe Nationwide are technically providing a single ISA, containing multiple sub-accounts with different terms. Distinction is mostly academic, though.