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Club lloyds

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Am I being thick (please don't answer that) but wouldn't my £5000 ISA (currently at 2.25%) be better sat in a club lloyds account (for example) as they are offering 4% on balances up to £5000

Any ideas / suggestions would be helpful

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  • anamenottaken
    anamenottaken Posts: 4,198 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    savingNoob wrote: »
    Am I being thick (please don't answer that) but wouldn't my £5000 ISA (currently at 2.25%) be better sat in a club lloyds account (for example) as they are offering 4% on balances up to £5000

    Any ideas / suggestions would be helpful

    If you don't have other funds to put in the Club Lloyds (so you earn there as well as in the ISA) and you aren't paying tax at 45%, then your nett income from the £5K would be better in the Club Lloyds.

    However, it also depends on your view of needing to protect that £5K from being subject to tax in the future.
  • vouch0r
    vouch0r Posts: 206 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    yes, i work it out as earning 3.2% after tax
  • TONY1
    TONY1 Posts: 16 Forumite
    you can put it in llodys club to get better interest and put it back in a isa account just before April next year as the amount you can put in a isa goes up to £15000 in July this year.
  • jimjames
    jimjames Posts: 18,710 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    savingNoob wrote: »
    Am I being thick (please don't answer that) but wouldn't my £5000 ISA (currently at 2.25%) be better sat in a club lloyds account (for example) as they are offering 4% on balances up to £5000

    Any ideas / suggestions would be helpful

    Why Club Lloyds?

    Use TSB and you'd get 5% on £4000 and can then use Nationwide for another £2500.

    No point using an ISA at all for that amount.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Eco_Miser
    Eco_Miser Posts: 4,866 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    TONY1 wrote: »
    you can put it in llodys club to get better interest and put it back in a isa account just before April next year as the amount you can put in a isa goes up to £15000 in July this year.
    Although until you have £15000 or ISA rates go up/current account rates come down, you will be better off leaving it all in TSB/Lloyds.
    Eco Miser
    Saving money for well over half a century
  • Thank you very much guys thats a great help
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