Where should my money go??

Archi_Bald

RBates82 wrote: »

Thanks for the replies so far guys, most helpful! Looks like two TSB accounts might be the better solution? The house purchase could be from 6 - 18months

2 TSB Plus are, without a shadow of a doubt the best option for £3-4K for the next couple of years. Ignore any other suggestions, particularly the ISA ones.

If you have additional money, you could think of adding a joint account with your partner (though be careful with joint accounts), or you could go for a Nationwide FlexDirect which pays the same rate on up to £2.5K but only lasts for 12 months.

jimjames

delmar39 wrote: »

It's currently sitting in a current account so by moving it into an ISA the benefit is immediate.

Can you also explain how 1% in an ISA is better than 5% taxed? The maths doesn't quite add up to me. And also how an current account is any less immediate benefit than an ISA. From my experience the opposite is true, current account is opened immediately but ISA may take some days.

If you're using ISAs you may find it worth doing some reading up on the forum.

delmar39

eskbanker wrote: »

You're missing the point here!

Yes, instant access cash ISAs are better than current accounts that don't pay any interest.

But, as pointed out in a number of posts further up the thread, there are a number of interest-paying current accounts which are a better bet for OP than cash ISAs.

It's what I would do I didn't say it's the best option! Read the best home for you money pages on this and any other website. As good as any advice you'll get, but this forum is designed to get the views of what other people would do. All responses different and others on this thread also suggest an ISA. It's added to the mix for the OP to consider, nothing more.

delmar39

jimjames wrote: »

Can you also explain how 1% in an ISA is better than 5% taxed? The maths doesn't quite add up to me. And also how an current account is any less immediate benefit than an ISA. From my experience the opposite is true, current account is opened immediately but ISA may take some days.

If you're using ISAs you may find it worth doing some reading up on the forum.

I don't just use ISAs. I go for what's best at the time. 6% Nationwide regular savings for example better than any ISA out there and I'm aware that some current accounts pay more than a tax free ISA. Given that the OP is asking the question and has a lot of money sitting in a current account I presumed that a simple option to get the money working harder was best, but obviously there are other options for the OP to consider. Frustrates me that posters shoot down replies. Some give detailed answers, some give one liners based on what they would do. No right or wrong here - go to a financial advisor if you want expert advice.

delmar39

innovate wrote: »

I am sorry, but you are just totally wrong. Literally no cash ISA allows DDs, which is what you claimed, and what the question is about. Can you name any cash ISA you can deposit into by DD?

The only cash ISA I am aware of into which you can deposit by DD is from the Newcastle BS. They have just announced that they are withdrawing that facility.

Perhaps you were thinking of SOs?

Yes they do, on variable rate ISAs, not fixed. Tesco, M&S and my wife pays be DD into her ISA with an external bank.

delmar39

innovate wrote: »

You need to tell us how because it isn't obvious at all what the benefit is.

I gave a one line answer based on what I would do. It's for the OP to decide based on all the replies on here, some of which also suggest an ISA. As I've said in another reply, go straight to the best home for you money pages on this website and others and anyone can get the info they need.

loonytunes123

LISTEN TO DELMAR...he said isa's are useless if you are a non tax payer, but better than some current accounts which pay nothing, so if you don't pay tax, use TSB Classic, or the like, to maximise how much you have

delmar39

RBates82 wrote: »

Hi guys,
I'm confused. I have between £3-4k sitting in my current account. (Stupid, I know )
Where should I place this money? My partner and I will be using this as part of a house deposit, so I'm not entirely sure how long the money can stay in a savings account or isa.
What does everyone think?
Thanks,

http://www.moneysavingexpert.com/banking/?_ga=1.256470667.1203223703.1402511031


OP - read the web page above, it gives all the advice you need. This includes ISAs and lots of other options. Best of luck with finding a home for your money.

delmar39

loonytunes123 wrote: »

LISTEN TO DELMAR...he said isa's are useless if you are a non tax payer, but better than some current accounts which pay nothing, so if you don't pay tax, use TSB Classic, or the like, to maximise how much you have

Thanks for this, you give a simple answer and the more 'senior' posters tend to jump all over you. One of the reasons why I left these forums and had it not been for you post I'd have gone away again! Cheers.

jimjames

loonytunes123 wrote: »

LISTEN TO DELMAR...he said isa's are useless if you are a non tax payer, but better than some current accounts which pay nothing, so if you don't pay tax, use TSB Classic, or the like, to maximise how much you have

Can you highlight the post where this is said as I can't see it?

An ISA is useless as a non taxpayer. For small amounts of money under £15k it is also useless for a taxpayer at the moment when far higher rates are available elsewhere.

delmar39 wrote: »

http://www.moneysavingexpert.com/banking/?_ga=1.256470667.1203223703.1402511031


OP - read the web page above, it gives all the advice you need. This includes ISAs and lots of other options. Best of luck with finding a home for your money.

Unfortunately MSE is also out of date and sticking to the ISA is best mantra. If you are reading that as your main source of info then it makes sense seeing your posts. MSE refer to the current accounts as a loophole - they are not, they are a valid option for savings.

I'll repeat, at present for anyone who currently has under the £15k ISA limit and isn't expecting to breach that, an ISA is not the best option IF your aim is to maximise your return.

By careful use of multiple current accounts you can get 12.5% on £1000. No ISAs come anywhere near that, most are not even 1/10 of the interest.