What to do with 2k lying in my current account

ap86

Hi all! First time posting, but regular user of the website.

So i've used up my cash ISA allowance, I have about 2k spare sitting in my current account and want that money to do something. I've looked at some savings accounts that offer pitiful interest rates (except the first direct one) but at the same time I don't want to be tied in to a fixed term savings account, like FD. So would the best and sensible thing, not only from a tax avoidance point of view, be putting this spare cash into my stocks and shares ISA?

Ta

thenudeone

There are plenty of current accounts offering 3% or more as long as you move £1k in each month (you can move it straight back out again seconds later if you want):

Lloyds
TSB
Nationwide
Yorkshire
Clydesdale

ap86

thenudeone wrote: »

There are plenty of current accounts offering 3% or more as long as you move £1k in each month (you can move it straight back out again seconds later if you want):

Lloyds
TSB
Nationwide
Yorkshire
Clydesdale

but is going for a tax free savings account more beneficial?!

jimjames

ap86 wrote: »

but is going for a tax free savings account more beneficial?!

You've already said you've used up your ISA allowance so there is no tax free savings account option available until after April.

You'll certainly avoid tax by keeping it in a current account paying no interest but many people would prefer to pay tax and get some interest instead.

The other option is a S&S ISA but that is not a savings account and the value can go down as well as up. So it depends if you are happy for the capital to vary.

If not you can get up to 5% at Nationwide and 3%/4% at the others mentioned.

ap86

jimjames wrote: »

You've already said you've used up your ISA allowance so there is no tax free savings account option available until after April.

You'll certainly avoid tax by keeping it in a current account paying no interest but many people would prefer to pay tax and get some interest instead.

The other option is a S&S ISA but that is not a savings account and the value can go down as well as up. So it depends if you are happy for the capital to vary.

If not you can get up to 5% at Nationwide and 3%/4% at the others mentioned.

I've used up my cash ISA allowance but not my stocks and shares one... decisions decisions. I may look at the 5% nationwide account. Is that a fixed term regular savers or an easy access saving account?

xylophone

I may look at the 5% nationwide account. Is that a fixed term regular savers or an easy access saving account?

http://www.nationwide.co.uk/

pip895

I have nothing at all in cash isas - all my isa allowance goes on S&S isa. If you are happy with the risk/don't need the cash out in the next few years go for the S&S Isa every time.

DiggerUK

Large gin and tonics all round. 2k's worth.
..._

Eco_Miser

thenudeone wrote: »

There are plenty of current accounts offering 3% or more as long as you move £1k in each month (you can move it straight back out again seconds later if you want):

Lloyds
TSB
Nationwide
Yorkshire
Clydesdale

Note that Lloyds & TSB require a minimum of £3000 to get 3%.

Frugalsod

Eco_Miser wrote: »

Note that Lloyds & TSB require a minimum of £3000 to get 3%.

But I think that they pay interest at all levels it just gets higher the more you have. I also think that there is a £5000 limit as well. I have one and since I am not going above £5000 it suits me.

Eco_Miser

True, but since the OP has only mentioned £2000, and there are two accounts with no minimum balance, one of them would be better.