Overdraft, ISA and Graduate account advice!

mkknrtn

Hello,

Just looking for a bit of advice for you money savers on what you feel my best options might be!

Basically, I graduated in 2011 with not only a degree but a £1,500 planned overdraft with lloyds tsb (which was maxed out!) It's now two years since graduation and I will need to repay £500 (or not, but i'll be charged for it if I don't!) in October. Next October I will need to pay another £500 and in 2015 I will repay the final £500.

After graduation, I opened an ISA again with Lloyds TSB, something which I never previously had. I have now managed to save £3000 in this which I am very happy with! It might have had some good rates at first but now it's quite poor (below 1%).

I still live in my overdraft and the day before I get paid I move any money I have left in my current account to my ISA, so my balance is -£1500 before I get paid.

So technically I have more than enough money to pay my overdraft off, but I haven't done this yet for two reasons; 1) My overdraft is free, it doesn't charge me to have this extra £1500 if I need it (which I haven't as of yet!) and 2) Keeping £1500 extra in my ISA is making me money.. albeit not a great deal. By also paying it off over the next two years I will also have 'extra' money sitting in my ISA to make interest.

My question is this: I'm aware that there are lots of good current accounts out there at the moment not to mention ISAs which are better than mine. Do you think it's best to carry on doing what l I am doing until 2015 when the overdraft is fully paid off and I can switch if I want to? Or do I pay it all off with the savings I have and go elsewhere?

Please note I have no intention to spend the £1500 overdraft money, I purely kept it incase I did (I have moved twice since uni so I have dipped in it slightly once or twice!) and to earn some extra interest in my ISA.

Thank you all in advance!

grumbler

mkknrtn wrote: »

My question is this: I'm aware that there are lots of good current accounts out there at the moment not to mention ISAs which are better than mine. Do you think it's best to carry on doing what l I am doing until 2015 when the overdraft is fully paid off and I can switch if I want to? Or do I pay it all off with the savings I have and go elsewhere?

I don't understand the question.
You can carry on, but with 1% this is making you just £15 p.a. and will make even less after repaying £500.

Obviously, you can keep your current account with overdraft and switch your ISA now thus making a little more.

mkknrtn

The question is: what is the best course of action? if I switch my current account now, I will have to pay off my £1500 overdraft. This means I have £1500 less to put in whatever Isa I choose. I could stick with this current account for another two years and perhaps get a new isa elsewhere with better rates which I can put my overdraft money in. Or I can just pay it off and go elsewhere for both accounts but I don't know which would make me better off?

grumbler

How can you be better off after switching the account that offered you free overdraft?! What's the point?
Switch the ISA and keep the current account. I thought that this was obvious - and have already said this.
If you wish you can have a second current account and even more than two.

mkknrtn

Alright alright I was only asking!

CLAPTON

mkknrtn wrote: »

Alright alright I was only asking!

bizarre........................