Savings options..

Buzzz

Hi,
I have done some homework but can't quite decide what to do.

I currently have one instant access ISA with Tesco, £5760, new rate 1.75% and am looking at opening another ISA with £6500. So total of £12,260.

I will want to access all of this money later this year, around Aug /Sept time.

I have looked at the Nationwide ISA at 2.5%, but I can't transfer the Tesco ISA into this, although could pop the £6500 in there.

The other option is to go for an account where I could put the £6500 and the Tesco amount.

Or set up a savings account (have read the pro's and con's) because I am most likely putting this money in there short term this could benefit me, although I incur 40% tax so i'm not sure if I would see the benefits.

Any thoughts welcome

saintalan

Why look at ISAs? Even paying 40% on a Santander 3% current a/c will get you 1.8%.

Look at the current a/cs here.

Alan

want_to_save

why not have 2 x TSB accounts with 2k in each (have to pay £500 per month into each) paying 5% and then do Santander 123 with rest?

Buzzz

Thanks both, will reply to you individually.

Saintalan, because 1.8% is less than the Nationwide ISA and only 0.5% more than what I can get now, which to be honest for my time isn't worth the change. Unless i'm interpreting this wrong?

Want to save more, what are the TSB accounts offering? Do you have to pay in £500 each month and only get the interest when you hit £2k? 5% minus 40% tax would leave 3% wouldn't it? Is the 123 Santander still being offered?

Buzzz

Should also say, that minus tax the Santander would be 1.8%, there are higher high interest savings accounts now being launched since the Santader aren't there?

notbritishgas

Oh dear, wrong thread!