Two ISAs?

newuser78

I currently have 18K in Santander ISA Saver (1.2%) and have 3.5K in my rubbish Natwest current account waiting to be transferred (well have 4.5K but leaving 1K aside for holiday this year!)

What would be the best option?
1- Transfer the full 3.5K immediately to Santander current ISA and continue to contribute every month
2- Open Nationwide's Regular ISA (2.5%) and drip feed maximum £1,250/month out of 3.5K
3- Switch Santander to fixed 1.8%, transfer 3.5K, and contribute every month
4- Switch Santender to fixed 1.8% 2-year and open Nationwide's 2.5% for contribution only
5- The above are rubbish, consider....?

I quite like Santander's 123 accounts (either current or credit) but I am too mean/frugal and don't spend enough so cannot justify myself on monthly charges! :rotfl:

I have set myself a challenge to save 15K this tax year.

innovate

newuser78 wrote: »

I quite like Santander's 123 accounts (either current or credit) but I am too mean/frugal and don't spend enough so cannot justify myself on monthly charges!
.

Yet you are quite happy with ISAs at abysmal interest rates?

Are TSB Plus, Club Lloyds current and monthly saver, FD regular saver on your radar? If not, why not?

Ref your title: you can have as many ISAS as you like - one new cash and one new S&S ISA every year. Whether this make sense is another question. What are you objectives - savings? Investments? How much is in your emergency fund? How much do you need in the next couple of years? How much is in your pensions fund? You don't have to have all your money in the same bucket.

Lansdowne

newuser78 wrote: »

I have set myself a challenge to save 15K this tax year.

Given this fact and your wish to save via ISAs your number 2 might work.

1 would work but will simply give the low interest rate in all your savings.
3 won't be possible because a fixed rate account will probably stop accepting new money so won't accept monthly deposits.
4 seems to me the same as 2
5 needs more attention, if you have any utilities/council tax to pay the £2/mo may well be offset by cashback on the direct debits.

innovate

Lansdowne wrote: »

Given this fact and your wish to save via ISAs your number 2 might work.

Sure it would work but it wouldn't yield the most money.

Putting the cash into best paying current accounts until next March will he old more real money. Then, in March, you can still put the lot into a cash ISA shelter.

newuser78

Thanks both.

Yet you are quite happy with ISAs at abysmal interest rates?

Not at all.

Are TSB Plus, Club Lloyds current and monthly saver, FD regular saver on your radar? If not, why not?

I liked TSB's 5% but interest is applied on a max of £2,000 so I am not 100% sure if it is any good particularly when compound interest is added? The same for Club with 4K-5K.

Ref your title: you can have as many ISAS as you like - one new cash and one new S&S ISA every year. Whether this make sense is another question. What are you objectives - savings? Investments? How much is in your emergency fund? How much do you need in the next couple of years? How much is in your pensions fund?

The current ISA is my emergency fund. I currently contribute 3% of my salary to company pension (other 3% matched by company)

My partner and I broke up last year so this year I am working hard and saving hard for myself. I am thinking long term (minimum 3+ years) of buying a house either as homeowner or buy-to-let.

Overall, I want to make my money work hard but not so hard that it sweats too much (risky)! I was very close to getting a S&S ISA but despite research, seeking advice, I got scared as it is still a minefield!

Having said that, cash ISA is not my only option as I still want to open a high-interest account somehow but am in the process of moving and am worried about the hits on my credit file (and losing tenancy).

5 needs more attention, if you have any utilities/council tax to pay the £2/mo may well be offset by cashback on the direct debits.

My rent includes bills, council tax, etc. (£410) so no direct debit except for my mobile contract at £42/m hence I cannot persuade myself to get a fee-paying account however this would change next two months when I move with a friend.