Need advice on my savings plan

chelseablue

I currently have £21,000 in a Santander ISA, but they have recently dropped the interest rate so I would like to transfer it somewhere else

I was looking at the Halifax ISA 2% fixed for 18 months, but I understand after I make the transfer in I cant add anything to it?

Anyway I was thinking of applying for the Nationwide ISA that pays 2.5%, it doesnt allow transfers in so I would need to close my Santander ISA and pay £1,250 a month into the Nationwide ISA

Plus open a Nationwide Reguar Saver that pays 2.5% as long as I pay in at least £500 per month, to put the remaining £6k in

Is there a better way of doing it that I've missed?

chelseablue

Anyone help?

OneADay

I don't think there is much on offer at moment for ISAs.
The Halifax 18 month one I think is fixed rate - so you can't add to it after initial investment.

I would hold fire till the ISA limit is raised on 1st July 2014 - details here http://www.thisismoney.co.uk/money/saving/article-2584326/Isa-limit-increase-15k-held-cash.html

As you have £21k , you would only be pump £15k into an ISA this year so still have to find somewhere else to put the rest of the cash.

Personally I am holding fire till I see some better rates - or stick to Fixed Rate Saving Bonds. ICICI are offering I think it was 2.7% for 3 years - rumour is rates are unlikely to increase till 2017 so that might be better option - even with 20% tax deduction.

So in summary, I recommend waiting till July, stick into instant access ISA then at the best rate on offer, rest of cash into longer term fixed rate bond.

And if you want a bit of risk - you could try Peer to Peer lending - but only try it. Say with £100 short term investment and see if you get a better return than standard savings, P2P not coverered by government protection.

jimjames

You might want to read the threads on the forum about accounts paying better rates than ISAs. There is a lot of info already on here with lots of options.

Archi_Bald

OneADay wrote: »

I would hold fire till the ISA limit is raised on 1st July 2014 -

there is no reason to believe there will be new deals in July

OneADay wrote: »

As you have £21k , you would only be pump £15k into an ISA this year so still have to find somewhere else to put the rest of the cash.

???The £21K is already in an ISA, so can be transferred as an ISA without affecting the current year's allowance.

OP, it is perfectly normal to transfer an existing ISA and not make any new deposits into it. New deposits can be made into a new ISA.

OneADay wrote: »

Personally I am holding fire till I see some better rates

No need to hold for better rates for new money - you can stick thousands into current accounts that pay a lot better than the best ISAs, and you can do that now. You can still fill an ISA in March 2015 if you want to be sure you used your 2-14-15 allowance.

OneADay

Archi_Bald wrote: »

???The £21K is already in an ISA, so can be transferred as an ISA without affecting the current year's allowance.

Missed that important bit..luckily I am not in the same position as OP at the moment, will be one day when fixed rate expires with Virgin.

chelseablue

Archi_Bald wrote: »

there is no reason to believe there will be new deals in July

???The £21K is already in an ISA, so can be transferred as an ISA without affecting the current year's allowance.

OP, it is perfectly normal to transfer an existing ISA and not make any new deposits into it. New deposits can be made into a new ISA.

No need to hold for better rates for new money - you can stick thousands into current accounts that pay a lot better than the best ISAs, and you can do that now. You can still fill an ISA in March 2015 if you want to be sure you used your 2-14-15 allowance.

Sorry just to clarify, I can transfer my exsisting ISA into a new one, and make no futher deposits. Plus open another new ISA to make deposits into?

So I can open 2 cash ISA's in one tax year??

Vladislavs

chelseablue wrote: »

I currently have £21,000 in a Santander ISA, but they have recently dropped the interest rate so I would like to transfer it somewhere else

I was looking at the Halifax ISA 2% fixed for 18 months, but I understand after I make the transfer in I cant add anything to it?

Anyway I was thinking of applying for the Nationwide ISA that pays 2.5%, it doesnt allow transfers in so I would need to close my Santander ISA and pay £1,250 a month into the Nationwide ISA

Plus open a Nationwide Reguar Saver that pays 2.5% as long as I pay in at least £500 per month, to put the remaining £6k in

Is there a better way of doing it that I've missed?

In the current world, ISAs become pretty much useless. Period. Stop using it, dont be brainwashed by those tax free stickers, and move your money asap.
For example, your Santander will pay you 2.4% (after tax) for your 20k. Thats healthy 40£ a month for you/
Put the rest in TSB Classsic Plus account with 5%. You will be much much better off than !!!!!! ISA.
My 2c, GL

jimjames

chelseablue wrote: »

So I can open 2 cash ISA's in one tax year??

Transfers do not count against your allowance so .

You can only open one new ISA to pay money into each year. You can transfer as many times as you want but that is not connected to paying into a current ISA.

innovate

chelseablue wrote: »

Sorry just to clarify, I can transfer my exsisting ISA into a new one, and make no futher deposits. Plus open another new ISA to make deposits into?

So I can open 2 cash ISA's in one tax year??

You can OPEN as many as you like. You can only PAY NEW MONEY (ISA jargon calls that "to subscribe") into one cash ISA. Transfers don't count as new money or subscriptions.

Subject to the T&Cs of your ISA, you can also transfer (i.e. change provider) as often as you like. If you want to transfer any new money you deposited in the current tax year, you have to transfer all of that new money.