10K for short term

Smithers37

Hi folks,

I have 10.5K in my Virgin cash ISA which is only earning a poxy 1.75%. I used to have a fixed 3.3% with Lloyds, which is why I went for Virgin as it was the best ISA rate that paid monthly interest.

I've been thinking, I'm probably better pulling the money out of this ISA in to my LLoyds current account which earns 3%(2.6 after tax) right?

Before I do that, can anyone suggest a better way to save this money for the short term?

Love you all.

jimjames

Put £2500 into Nationwide Flexdirect at 5% then remainder in Lloyds

Smithers37

jimjames wrote: »

Put £2500 into Nationwide Flexdirect at 5% then remainder in Lloyds

Already have £2500 in NW. Great minds think alike. :beer:

100saving

with only 4 months till the new ISA limit i would wait. you will not get much more in the next 4 months and you never no what the rate will be then.

around the new ISA allowance all banks up the rate thats what i did. fixed for 12 months at 2.25% now you can't get much more than that for a size of 10k as what ever you get 20% the tax man gets.

eskbanker

Remember that the Lloyds current accounts only pay 3% on up to £5K, although you can have up to three of these (plus three more with BoS and three with TSB). Also 3% less basic tax is actually 2.4% rather than 2.6%.

You can get 4% gross on a fairly low capped limit at Clydesdale and/or Yorkshire, and 3% on up to £20K with a Santander 123, albeit with a few more conditions attached.