Santander 2.3% ISA (2yr Fixed)

Chorlie

I was thinking of moving my ISA I have with Nationwide to this Santander ISA (I have there 123 A/c).

I haven't paid anything into my ISA this Tax year.

I see lots of post regarding Nationwide 2.5% Regular ISA but little about this one. I can't transfer my old ISA funds into the Nationwide one but its seems like I can with the Santander.

The Santander pays 0.2% less interest, but since I can put the whole amount in and not drip feed it that should make up for the lower interest.

I already have TSB, Lloyds Club accounts etc.

So thoughts on my best option?

evenasus

Drip feeding an account with £1250 per month for 12 months will earn you £202.36 for the year.
This would equate to an interest rate of 1.35%

Archi_Bald

evenasus wrote: »

This would equate to an interest rate of 1.35%

No it would not. The interest rate is exactly 2.5%, as advertised.

Gromitt

If you already have the 15K in a 2% interest account, then drip feeding the £1250 per month into a Nationwide Regular Saver ISA @ 2.5% will give you £340 over the year (combining the interest on both the 2% account and the Regular Saver)

If you just transfer to Santander 2.3% fixed rate account then you'll get £345 in the first year.

Interest rates MAY increase slightly next year, which could mean a better deal by drip feeding.

I doubt there's going to be much in it however either way.

Of course, you need to subtract tax from the normal savings account.

evenasus

Archi_Bald wrote: »

No it would not. The interest rate is exactly 2.5%, as advertised.

If you put the £15,000 into an account for the whole year @ 2.5% then yes, you would receive £375 which equates to 2.5%.

However, if you drip feed £1250,00 per month for a year, you would then receive £202.36. This would equate to 1.3490% earned.

Archi_Bald

evenasus wrote: »

If you put the £15,000 into an account for the whole year @ 2.5% then yes, you would receive £375 which equates to 2.5%.

However, if you drip feed £1250,00 per month for a year, you would then receive £202.36. This would equate to 1.3490% earned.

You are comparing apples and pears.

The interest rate of the Nationwide Regular Saver ISA is 2.5% AER, not some other percentage.

Archi_Bald

Chorlie, there is a 3% AER ISA which allows transfers in. It is a 90-day notice account, and you can make additional contributions whenever you like.

https://forums.moneysavingexpert.com/discussion/4938603