ISA dilemma - subscribe now or in July?!

Parisian

Hii guys

Any advice would be very much appreciated

I currently have 50k+ in an ISA with First Direct which is receiving 2% interest. I haven't subscribed to this tax year as of yet (no planned reason, I was just busy) - is it worth depositing £5940 now and topping it up to 15k on July 1st OR would it be better to wait and see if there are any better deals come July?
ie. If I pay into my First Direct ISA now, come July I will be limited to staying with First Direct or only be able to transfer to another provider who accepts transfers in - new money ISA's would be off the cards for me as I would have already subscribed in this tax year.

The interest rates are so low, so I'm thinking not much is likely to change suddenly in July - any thoughts?

Thank you!

bsms1147

Many doubt we will see better returns come July.

However for most people their money would be better placed in higher-interest current and savings accounts, so I'd start there.

PeacefulWaters

2% for easy access? Nobody's going to offer a better rate for an easy access ISA.

But the 3% plus current accounts will earn you more if you're a basic rate taxpayer. So get one of those and move your money to a tax free shelter in March.

Lokolo

PeacefulWaters wrote: »

2% for easy access? Nobody's going to offer a better rate for an easy access ISA.

But the 3% plus current accounts will earn you more. So get one of those and move your money to a tax free shelter in March.

Unless the OP pays HRT.

PeacefulWaters

Lokolo wrote: »

Unless the OP pays HRT.

My brain was in a really strange place to miss that.

I even did the maths for a 40% taxpayer and got it wrong!

Parisian

Thanks guys!

That's a good idea - I have a 3% savings account (Santander First Home Saver) which is holding the money at the moment. I guess the only downside to keeping it there until March 2015, is that any interest earned can't be added to the tax free envelope of the ISA.

ps. Not paying HRT

Consumerist

Parisian wrote: »

. . . I guess the only downside to keeping it there until March 2015, is that any interest earned can't be added to the tax free envelope of the ISA. ps. Not paying HRT

But you will end up with more money to invest, anyway, than if you had saved in an ISA. It's the net return which makes you wealthier and if the tax man gets a slice of the action too then pat yourself on the back for also contributing to the nations wealth at no extra cost to yourself.

kidmugsy

£5940? You could get 5% (gross) on £4k of that by opening two accounts at TSB.