ISA or regular savings for just a couple of pounds

Everynamestaken

With the paltry interest rates, some may say it wasn't the hassle writing the thread, but it is a money saving forum after all. I have saved before but I'm trying to properly start my savings career now

At first, I am planning on saving an extremely modest 250 every month (without getting to it) and putting it somewhere. Most sites suggest ISA's first before regular saving accounts, however I'm just looking for the opinions of you expert savers.

HSBC are offering 1.69 tax free on e ISA's, but Yorkshire building society 3% gross including the bonus which includes one withdrawal in the account year.

As anyone seen any better for this novice saver?

ViolaLass

Yes, go for First Direct.

opinions4u

High rate regular saver for a year.

Then put the lump sum and interest on maturity into a best buy ISA.

Everynamestaken

opinions4u wrote: »

High rate regular saver for a year.

Then put the lump sum and interest on maturity into a best buy ISA.

Thats exactly what I was thinking, as I have some savings already but may need to dip into those depending on situations throughout the year, so need to start a fresh so to speak.

Think I will order a form from Yorkshire building society tomorrow, or Leeds building society and then after year, see how much I've saved all together (the 3100 will be the absolute minimum) then look at the ISA options.

Keep them coming, thankyou

innovate

Everynamestaken wrote: »

Yorkshire building society 3% gross

This regular savings account is not the worst, but way from the best. FD regular saver is 6% AER, admittedly without any withdrawals. Nationwide FlexDirect is 5% AER with no withdrawal restrictions but only up to £2.5K and must deposit £1K a month. HDBC reg saver is 4%, no withdrawals allowed. Yorks/Clydesdale Bank is 4% to £3K, unlimited withdrawals but must deposit £1K a month. Minimum deposit requirements should be no issue for anyone who can save money regularly.

There is a Regular Saver thread somewhere on MSE, listing all the best Reg Saver accounts.

Everynamestaken

innovate wrote: »

This regular savings account is not the worst, but way from the best. FD regular saver is 6% AER, admittedly without any withdrawals. Nationwide FlexDirect is 5% AER with no withdrawal restrictions but only up to £2.5K and must deposit £1K a month. HDBC reg saver is 4%, no withdrawals allowed. Yorks/Clydesdale Bank is 4% to £3K, unlimited withdrawals but must deposit £1K a month. Minimum deposit requirements should be no issue for anyone who can save money regularly.

There is a Regular Saver thread somewhere on MSE, listing all the best Reg Saver accounts.

hi innovate, thank you for that post.

Straight after I saw this I applied for a regular saver and will now get 4%. I saw this before but for some reason I thought this applied to graduate accounts, or paying customers and not the joe blogs of the world.

You"ve got me an extra few quid after 12 months anyway. So thanks for that.

tactic57

ISA Saving rates are so poor at the moment. Just got a letter from Barclays telling me about the 2.01% expected from 31 march - surely time to switch... newby to this site but already feeling very please with the wealth of info across different sections and opinions from forums. Thanks MSE

moneysavinggirl40

tactic57 wrote: »

ISA Saving rates are so poor at the moment. Just got a letter from Barclays telling me about the 2.01% expected from 31 march - surely time to switch... newby to this site but already feeling very please with the wealth of info across different sections and opinions from forums. Thanks MSE

2.01% is this a non fixed isa? thats quite good interest if it is accessible compared to what others are providing

brenda10

After tax I get £8 month on this account, opened one for my husband and one for me.
I faithfully transfer £1000 in on 1st day of the month and out again(you have to do that to get the 5%) then I leave £2500 in each of the flex directs. I will close that Flex direct come 12 month expiry(although they pay 1% after this time) . I will open another flex direct for another 12 months and see what happens.
Both flex directs have £2500 in them and I get £8.31 each (after tax). Win win situation. I have also opened a flexclusive to widen my options with regards my first mortgage as Nationwide offer incentives for their customers, BUT I will check an all of the market broker to compare best deals at the time.
Good Luck to all. Martin is my hero.:money:

innovate

brenda10 wrote: »

. I will open another flex direct for another 12 months and see what happens.
:

The T&Cs tell you what will happen. You won't get 5% if you had the same product in the previous 12 months.

bigadaj

innovate wrote: »

The T&Cs tell you what will happen. You won't get 5% if you had the same product in the previous 12 months.

I was just wondering about that, looks like I'll be moving to one of my other current accounts for a while at least, might even give halifax a whirl.