Credit union or ISA

Jab64000

Hi I have some money in a lump sum I am looking to save. I have looked at some ISAs which give you easy access and offer approx2.5%. A local credit union is advising me that it is in track to pay out 3% this year. I am keen to do the ethical thing and use a CU but am I missing something because the CU seems like a better return than an Isa - what is right?

Archi_Bald

The CU account, unless it is an ISA, will be taxable at 20%. So I they say they pay 3%, you will see 2.4%.

Depending on how much you have to save, you could probably get a lot more in interest paying current accounts, such as TSB Plus. There is also at least one CU that does offer 3% on a 1-year ISA, and more for 3 and 5 years.

planteria

or, perhaps, invest your ISA in Stocks & Shares?

planteria

alongside using an interest paying Current Account, and potentially saving with the Credit Union too?