ISA's - my head is spinning.

kashmirigirl

I've looked and looked at various ISA's but I just can't work out which is best, just when I think I've got the right one I read something that makes me think otherwise.


I really want to sort it out this weekend so thought I would post on here.


Basically I have the full ISA allowance. I want to put it into a fixed rate for 4 or 5 years whatever is best.


In July time I want to top it up, I don't think I will reach the full allowance of £15,000 but I'm going to try hard - may be I will reach £12,000.


Please point me in the right direction for which is best for me.


Many thanks in advance.

matttye

Don't bother with ISAs yet, there's much better interest rates available in current accounts.

Put your money into various current accounts and then move it to an ISA just before the end of this tax year (i.e. March 2015). That way you'll use your allowance for this year, but it will earn better interest in the meantime.

If you're a higher or top rate taxpayer then an ISA may indeed be best for you and you'll need to look into it, but for basic rate taxpayers current accounts or other savings accounts pay better ATM.

Regular savings:

First Direct Regular Saver - 6% AER, can deposit up to £300 per month
Nottingham BS Starter ISA Issue 4 (I know I said don't bother with ISAs but this rate is market leading) - 4% tax-free, can deposit up to £1,250 per month. If you have one in your area.

Current accounts:

Nationwide FlexDirect - 5% AER
TSB Plus - 5% AER (can have two of these)
Clydesdale Bank - 4% AER
Yorkshire Bank - 4%
Santander 123 - 3% on balances of £3k-20k + cashback on bills if you pay your bills with it

A lot of accounts have terms and conditions which you must meet in order to get interest, so make sure you read about these. They usually involve depositing a certain amount of money for you to gain interest that month, but you can usually take the money out again instantly.

The idea is to put your money into the highest interest current accounts, and then drip feed as much as possible each month into the higher-paying regular savers.

badger09

matttye wrote: »

Don't bother with ISAs yet, there's much better interest rates available in current accounts.

Put your money into various current accounts and then move it to an ISA just before the end of this tax year (i.e. March 2015). That way you'll use your allowance for this year, but it will earn better interest in the meantime.

If you're a higher or top rate taxpayer then an ISA may indeed be best for you and you'll need to look into it, but for basic rate taxpayers current accounts or other savings accounts pay better ATM.

Regular savings:

First Direct Regular Saver - 6% AER, can deposit up to £300 per month
Nottingham BS Starter ISA Issue 4 (I know I said don't bother with ISAs but this rate is market leading) - 4% tax-free, can deposit up to £1,250 per month. If you have one in your area.

Current accounts:

Nationwide FlexDirect - 5% AER
TSB Plus - 5% AER (can have two of these)
Clydesdale Bank - 4% AER
Yorkshire Bank - 4%
Santander 123 - 3% on balances of £3k-20k + cashback on bills if you pay your bills with it

A lot of accounts have terms and conditions which you must meet in order to get interest, so make sure you read about these. They usually involve depositing a certain amount of money for you to gain interest that month, but you can usually take the money out again instantly.

The idea is to put your money into the highest interest current accounts, and then drip feed as much as possible each month into the higher-paying regular savers.

Generally good advice but Yorkshire & Clydesdale have both dropped their rates for new customers - now only 2%

There's also Club Lloyds @ 4% with a linked monthly saver also @ 4% which might be worth a look

matttye

badger09 wrote: »

Generally good advice but Yorkshire & Clydesdale have both dropped their rates for new customers - now only 2%

There's also Club Lloyds @ 4% with a linked monthly saver also @ 4% which might be worth a look

Thanks for that, was going from (obviously out of date) memory!

Cheers

Wilkins

kashmirigirl wrote: »

I want to put it into a fixed rate for 4 or 5 years whatever is best.

Not fixed term for that period, most likely. I would not want to commit for more than 2 years at the moment.

markwilkinson

I fixed with Skipton for 3 years which feels about right, for me.