4K to put away...

john96

Hi all,

just looking at my santander esaver...4K in it, 1.30 interest!

Surely I can do better? Is ISA the best (only?) option?

innovate

You might get most in a Santander 123, or may be in a Nationwide FlexDirect. But it depends a lot on your personal circumstances (tax rate, age, need for the cash etc), so do some more research. There is a lot of information in this board that might be relevant to you.

itch_for_a_glitch

As said a 123 account will get you 3% less tax, we have just closed a couple of ISAs and dropped them in.

john96

thanks! I was looking at the post office ISA

F1F93

Put the first £2500 in a Nationwide FlexDirect at 5%, that'll net you £125 before tax. Only available for one year, then it goes down to 1%. Put the last £1500 either in Clydesdale Bank (4% until March 2015, then 2%), or Lloyds/TSB (3%). Reassess in a year or so.

No cash ISA that I am aware of will get you the same rates as above, even if you are a higher rate tax payer.

Also consider a First Direct Regular Savings account, giving you 6%. See the Regular Savings article for advice on how to dripfeed to make the most of this. You'll have to take out their current account as well I believe, which can charge. I think you need a standard savings account or ISA to avoid the charges, but I'm not 100% on this.