Where to transfer an old ISA - help please

timmah86

Hi all,

I've been reading threads over and over to try and get the best answer to this question but I can't make up my mind!

I am a higher rate tax payer (I think - currently on between £39k and 55k/year, depending on how much extra work I can get) and can put away around £1k/month in savings.

Most of my banking is Nationwide - I have a FlexPlus current account, FlexDirect account with £2.5k in, and a regular saver ISA which I have just started with £1250 in.

At the same time I have a Santander 123 account which I use for household bills/expenses/rent payments.

I also have a cash ISA with Virgin money with £12,500 in it, currently earning a rubbish 1.5%. This is the account I need help with!

I'm not keen to open Lloyds Club accounts because the interest still won't be great for me (and I'm not a fan of Lloyds due to past experiences)

The way I see it, my best option is probably to transfer the 12.5k to the Santander 123 2-year ISA. It just worries me that (although unlikely) I may need the money at some point in the next 2 years or that ISA rates will improve in that time and I'll miss out.

Any opinions on this? Any other options for the money?

Thanks for your help

Archi_Bald

You could most likely reduce your tax liabilities if you put your money into a pension.

timmah86

To be completely honest, I have very little understanding of pensions! I'm currently paying into my NHS pension at 9.2% of my basic salary. I guess you mean a private pension?

Archi_Bald

Possibly AVCs, or a private pension (SIPP). That's assuming the 9.2% is maxing what you can pay into your basic pension scheme. If it isn't, you would want to max this first because of the employer contribution.

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Money_Purchase_AVC_Member_FAQs_both_sections_all_members.pdf

There's a pension forum on MSE where you will get better answers than I can give.

timmah86

Archi_Bald wrote: »

Possibly AVCs, or a private pension (SIPP). That's assuming the 9.2% is maxing what you can pay into your basic pension scheme. If it isn't, you would want to max this first because of the employer contribution.

http://www.nhsbsa.nhs.uk/Pensions/Documents/Pensions/Money_Purchase_AVC_Member_FAQs_both_sections_all_members.pdf

There's a pension forum on MSE where you will get better answers than I can give.

Okay thanks, I'll check that out.

In the meantime, is the Santander ISA a bad idea?