Best options for lump sum savings

x.thinkpink.x

Hi,

I have a 2yr fixed ISA account hitting maturity in the next couple of weeks & wanted to find out what the best option of where to put the money accrued. There is 3k in the account, however I have already opened an ISA this financial year which unfortunately does not accept transfers in but does give one of the best rates out there at the moment as it has a regular saver bonus interest rate!

I was considering putting the 3k in bonds until the news came about recently that in most cases they are not beneficial to holders so am now at a bit of a crossroads.. Would the best option be to increase my monthly payment to max of £500 into my regular saver ISA (currently I put in £250 per month) and drip-feed from the 3k until approx May next year when the regular saver ISA account hits maturity & I can look at other options going forward as we will be in new tax year - Or are there any better suggestions of how I can maximise my saving potential?

I don't believe there is a limit (eg £5k p/a like most ISAs) on how much can be accrued in my regular saver ISA account as it is aimed at saving a deposit for potential non-mandatory mortgage options.

Many thanks!!

Archi_Bald

x.thinkpink.x wrote: »

I don't believe there is a limit (eg £5k p/a like most ISAs) on how much can be accrued in my regular saver ISA account as it is aimed at saving a deposit for potential non-mandatory mortgage options.

All ISAs have limits. For a cash ISA, it is £5,760 this year.

If you would only pay £2,760 into this year's ISA, then paying in the £3K from your old ISA could make sense.

But the best option could be to transfer your old ISA to another ISA that pays better interest. That way, you preserve your ISA allowance for the year, and you preserve the tax-free status of the money in you old ISA. You must ask the new provider to perform the transfer, don't try to do it yourself.