What to do with 18k? Current accounts Are Maxxed, Is An ISA a wise option?

MoneyInTheBank

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ColdIron

Any reason you have not considered the 123? Sounds perfectly 18K shaped

ColdIron

If you pay the fee at £24 pa it's 2.26% after BR tax. Have you no DDs? Mobile Phone contract?

ColdIron

You need to take 20% off the 123 if you are a basic rate taxpayer and I think the CC only waives the charge for the first year

The DDs are a prerequisite for earning interest so you would need to move it and find another. One obvious way if you do not have one is to open a Tesco saver and DD yourself. There is a thread detailing other choices

ColdIron

Welcome

CKhalvashi

If OP lives with parents, it may be worth offering to pay bills for them, in exchange for the cash/SO each month to his/her account.

If OP has bills, it may be worth paying these through the 123 by DD, as it can be cheaper with some suppliers and also the cashback can very easily offset the fee.

CK

ManAtHome

MoneyInTheBank wrote: »

And yes, will have to pay the £2 fee after a year I guess.

You need to check that bit - as ColdIron posted, you only get the CC fee-free for a year, the (current a/c) 123 would still charge £2 a month.

ColdIron

ManAtHome wrote: »

You need to check that bit - as ColdIron posted, you only get the CC fee-free for a year, the (current a/c) 123 would still charge £2 a month.

Yes worth checking that, I have taken you at your word. You would still be better off than with the ISA even paying the fee

BobQ

CKhalvashi wrote: »

If OP lives with parents, it may be worth offering to pay bills for them, in exchange for the cash/SO each month to his/her account.

If OP has bills, it may be worth paying these through the 123 by DD, as it can be cheaper with some suppliers and also the cashback can very easily offset the fee.

CK

Surely not suggesting taking advantage of the ignorance of the elders Better to suggest they open a 123 account!

BobQ

Have you started a pension?

Bear in mind that whatever the benefits of a current account in the short term the ISA will be tax free for the future as far as far as we can reasonably predict.

CKhalvashi

BobQ wrote: »

Surely not suggesting taking advantage of the ignorance of the elders Better to suggest they open a 123 account!

I know full well my parents wouldn't move away from HSBC, so not taking advantage of ignorance, offering to do yourself a favour.

CK