Move ISA to Santander 123 Current Account or new ISA or alternative ?

watcha

Hi,


Following threads on here, I've opened a TSB Plus account and a Santander 123 account. From my main current account I've put £2k into the TSB and £3k into the Santander accounts and set up the required standing orders and DD to gain the interest rates.


I've also got an ISA with The West Brom with just under £20K in but the rate has now gone down to 0.75%. Should I transfer this to a new ISA or would I be better filling up the Santander account to the max £20k to get the interest from that ?


If the ISA is the better option then any suggestions as with my limited knowledge I can't see one that seems that good or is there an alternative ?


Thanks

eskbanker

You should definitely get it out of the 0.75% ISA asap but in terms of where to put it, your £20K in a 123 will earn you 2.4% after basic rate tax (assuming you can rustle up enough cashback DDs to offset the £2 monthly fee). The only way of beating that level of return in a cash ISA is to commit the money for a lengthy fixed rate, but the other factor to bear in mind is that once you take the £20K out of the current ISA, it loses its tax-free status irreversibly. However, with the imminent rise in annual allowance to £15K, this is less of an issue than it used to be, but a lot depends on what your plans are for the money....

lurkylurky

You could transfer your ISA to the Santander 123 2 year fixed rate ISA paying 2.3% which is only available to 123 current account or 123 credit card holders.

Stubod

..yes..just opened a new one for this year, and transferred 2 previous ones from Bham Mid as their rate had dropped to 0.5%...did it over the phone, and was all done in about 5 days....

watcha

Thanks for your replies. At the moment, it's just savings and haven't really got a plan for spending it. So the Santander 2 year fixed ISA would be my best bet ?

POPPYOSCAR

Just watch the admin.

Transferred from fixed rate that recently matured into the new fixed rate at 2.3% and someone"pushed the wrong button" and did it the wrong way round putting my new ISA into the old one!

Good job I read the paperwork that came in the post.

wearside_2

I am awaiting access to my Santander FRISA that matures today and hopefully will also include the 0.10% bonus for Rory McIlroy winning the 2012 PGA. £20,000 is going in my non tax paying wife's 123 Account (3%), I have transferred 3 Direct Debits here to of set the £2 monthly fee. Other amounts are going into her 3 TSB Classic Plus Accounts (5%), her Nationwide Flex Direct (5%), and my two TSB Classic Plus Accounts (4%). She has also opened Regular Saving Accounts at First Direct (6%) and HSBC (6%) and I have one at First Direct (4%). For available no notice money we both have new Regular Saver ISA's at Nationwide paying 2.5% where we can put £1250 each per month. It will be a bit of a faff setting up the relevant Standing Orders to satisfy account requirements but well worth it IMHO.