Looking for advise on my plan

MikeD1_2

Hi all, would appreciate thoughts on my plan below as I'm not very experienced with this kind of thing!

I have recently had a bond with 23.5k come to the end of its fixed term, so currently have that sitting in a current account earning essentially nothing. My main aim is to get consistent, safe interest, without locking cash away long term (I have mortgage thoughts in the next year or two).


MY PLAN:

Initially I was going to be lazy and stick it all (barring a 5k ISA) in to a Santander 123 account, as it's an easy option. However I was surprised to find my application was declined by Santander. I can only presume it's because I was quite honest in the application process, and did not tick the box saying my salary would be transferred in or opt to transfer my current account over. I don't have any bad credit history and have never had debt other that student loans, so a lesson to others - indicate that the Santander 123 account will be your main account on the application!!


So currently, my thoughts are as follows;

- 5k in to the Coventry Building Society 4 year fixed ISA at 2.75% (due to low 120 day penalty for early withdrawal).

- 2.5k in to Nationwide FlexDirect account at 5%.

- 4k in to TSB Classic Plus account at 5% (my understanding is I can open two accounts at 2k each).

- 10k more in to the CBS ISA above as at 1st July when new ISA rules come in to play.

Total: 21.5k


The issues I see with this are;

- 2k left uninvested.

- Involves opening/maintaining four accounts.

- 10k left uninvested until new ISA rules on 1st July.


ADDITIONAL QUERY

At the risk of making this post even longer, I have an additional query on my current ISAs. Currently I have;

- Circa 11k in a Barclays ISA @ I believe 1.5%

- Circa 5k in a Natwest ISA @ practically nothing (had been a 2 year fixed rate but ended in April).

Is there a particularly good place to do ISA transfers in? The CBS one mentioned above doesn't allow it. The Natwest one in particular needs to move!


Thanks for any advise anyone can offer on any of this. Really appreciate these forums!

xylophone

ISA information here http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

Eco_Miser

With the hassle of yet another current account, £4-5000 in Club Lloyds @4%

MikeD1_2

xylophone wrote: »

ISA information here

Thanks for that - really good list regarding the transfer in ISA question. Had to remove link from quote, apparently I'm not allowed to post those yet.

I quite like the look of the Barclays one at 1.39% for balances above 15k which allows transfers in. Not the highest rate - but considering the marginal difference it's certainly an easy option given I already bank with Barclays.

I'm not entirely clear on the ISA rules regarding opening one account per year though. If I choose to "open" this Barclays ISA, but only transfer in prior year balances (so no new ISA contribution), am I still allowed to open a new ISA with Coventry Building Society to use up this years allowance? Or would opening this Barclays one use up that one new cash isa account for the year? Thanks - sorry I'm not very experienced with these!

MikeD1_2

Eco_Miser wrote: »

With the hassle of yet another current account, £4-5000 in Club Lloyds @4%

Thanks, I hadn't seen that one.

Potentially I could do that instead of the Nationwide FlexDirect account. Rate isn't quite as good, but would allow me to invest everything including that spare 2k without having to deal with an extra bank. Also the rewards seem quite good, free cinema tickets!

Regarding the 1.5k - do you know if I can just transfer cash in then straight back out to avoid the £5 fee? If so I think this is ideal!

knack92

MikeD1 wrote: »

Thanks, I hadn't seen that one.

Potentially I could do that instead of the Nationwide FlexDirect account. Rate isn't quite as good, but would allow me to invest everything including that spare 2k without having to deal with an extra bank. Also the rewards seem quite good, free cinema tickets!

Regarding the 1.5k - do you know if I can just transfer cash in then straight back out to avoid the £5 fee? If so I think this is ideal!

Yes. Same for TSB (to receive interest), 500 in and out.

MikeD1_2

knack92 wrote: »

Yes. Same for TSB (to receive interest), 500 in and out.

Excellent, thanks.

Do you know from experience if people tend to get accepted for these even if not switching over from main current account?

Not sure I can be hassled with the bother of moving everything, so figure I'll just swap my direct debits over for two phone bills and leave it at that. However that approach didn't work for Santander, so wouldn't want a repeat of that!

BarrBru

Can I ask why you have it all in cash savings? Is it because you need to use it soon?

If it isn't and you can commit at least some of it for a longer period of time, say 5 years or so you can make much more putting it in to an investment trust or fund. A low risk one if you are concerned about risk.

ANGLICANPAT

You need to check if Barclays allow transfers in , I fancy they dont.

ANGLICANPAT

You need to check Barclays accept ISA transfers in . I fancy they dont.

knack92

MikeD1 wrote: »

Excellent, thanks.

Do you know from experience if people tend to get accepted for these even if not switching over from main current account?

Not sure I can be hassled with the bother of moving everything, so figure I'll just swap my direct debits over for two phone bills and leave it at that. However that approach didn't work for Santander, so wouldn't want a repeat of that!

I can't speak for Club Lloyds but for TSB you don't need to switch or have DDs.

"Our new Plus Account is not like other bank accounts:
We’re happy for you to ‘try before you buy’ so you can see how it feels being a TSB customer. Other banks insist you move your standing orders and direct debits before they’ll give you their special deals."