Where to put £5600?

egor110

I have £5600 to 'put somewhere'.

I could stick it in nationwide isa @ 2% so £112 interest and no tax.

Or i could put it in santander 123 @ 3% so £127 but taxable at lower rate, but get money back for direct debits.

Or i could get £160 if i put in a halifax current account £100 reward for joining and £5 month obviously would then move it again in a years time.

Have i over looked anything?

HappyMJ

egor110 wrote: »

I have £5600 to 'put somewhere'.

I could stick it in nationwide isa @ 2% so £112 interest and no tax.

Or i could put it in santander 123 @ 3% so £127 but taxable at lower rate, but get money back for direct debits.

Or i could get £160 if i put in a halifax current account £100 reward for joining and £5 month obviously would then move it again in a years time.

Have i over looked anything?

Why don't you open the Halifax account and move some direct debits over to get the £100 anyway. You don't have to leave any money there. You have to have £750 a month credited into the account...you can withdraw it the same day.

Then open the Santander account and take advantage of the offer and put the rest wherever the highest rates are.

egor110

I missed out i can get 5% with nationwide but can only put in £2500.

Would prefer to keep it down to 2 accounts/products.

Is there really any point to a isa when the other accounts more than make up for the tax i'd have to pay.

squeeks

Well, there is nation wide that gives you 5% on the first £2500 and there is the first direct regular saver 6% (max £300 per month, so £3600 max per year).

So combine the above with a Santander 123 account may be an option, providing you can drip feed first direct and keep Santander above the £3000 threshold over the year, which may be quite easy if you bounce £2500 between Santander and Nation wide. So you should be able to get closer to 4 - 5% gross.

* Oh and don't forget the halifax accounts which give you £5 a month for bouncing money through them. + halifax credit card that gives you £5 if you spend £300 a month on it.

It is all a bit of a faf though, so you will have to weigh up the effort vs reward over dropping it in an ISA or Santander over the longer term and forgetting about it.

HappyMJ

squeeks wrote: »

Well, there is nation wide that gives you 5% on the first £2500 and there is the first direct regular saver 6% (max £300 per month, so £3600 max per year).

So combine the above with a Santander 123 account may be an option, providing you can drip feed first direct and keep Santander above the £3000 threshold over the year, which may be quite easy if you bounce £2500 between Santander and Nation wide. So you should be able to get closer to 4 - 5% gross.

It is all a bit of a faf though, so you will have to weigh up the effort vs reward over dropping it in an ISA or Santander over the longer term and forgetting about it.

The faf doesn't take that much time. In my opinion it's well worth the extra effort.

I have standing orders moving amounts in and out of the Halifax to meet the minimum funding requirement to get the £5 a month.

egor110

Or first direct have a regular saver that pays 6% up to £3600 so i could drip feed money into that?

matttye

egor110 wrote: »

Is there really any point to a isa when the other accounts more than make up for the tax i'd have to pay.

Yes, it stays tax free year after year and you can transfer in previous ISA allowances to whichever account allows transfers in and has the best interest rate that year, without affecting your current allowance. So if a 5% ISA pops up next year and allows transfers in, you could transfer in this year's allowance as well as pay in next year's allowance, then you'd have £11k or however much earning 5% tax free.

Personally for the simplicity of it, I'd stick it all in a Santander 123 account (if you can set up direct debits to get cashback on, even better) and drip feed a certain amount each month into a high paying regular saver.

Nottingham BS has a 4% ISA and you can deposit £480 per month, if you live near one. You have to lock your money away until April 2014 though. They also have a 5% regular saver but, again, you have to lock your money away until September 2014 and you can only pay in £250 per month.