Where should my money go??

innovate

delmar39 wrote: »

I don't just use ISAs. I go for what's best at the time. ......I'm aware that some current accounts pay more than a tax free ISA.

So why would you go for an ISA if right now you have £3K - £4K to save for 18-24 months?

delmar39 wrote: »

Frustrates me that posters shoot down replies.

Frustrates me that people recommend ISAs to somebody who has just £3K - £4K to save for 18-24 months. What is the point of an ISA in these circumstances? You still have not answered that question.

delmar39 wrote: »

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.

Ah right, so it's a tiny fraction of the available cash ISAs. That's slightly different to "all of them" as you ascertained before.

delmar39 wrote: »

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.

Each and every single one of them had a response to point out that an ISA wasn't the best option for the OP. You just ignored all of that and said "I would do an ISA" and claimed "the benefit would be immediate". You are, btw, not coherent: on the one hand you say you "go for what's best at the time" and on the other you say you would go for a sub-2% ISA when it is possible to get double that after BR tax. The OP can get £320 interest for 2 years of £4K, and you suggested they should settle for less than £160. They are saving for a house. I just can understand why anyone here on MSE would want to suggest anything but the top option to the OP.

delmar39 wrote: »

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.

Plenty of websites are talking about short-term savings in current accounts. The ones that spring to mind are the Daily Telegraph and lovemoney.com. Even MSE have begun to go away from their "cash ISA at all cost" mantra: http://www.moneysavingexpert.com/savings/savings-loophole.

innovate

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

Now that is even more bad advice (and I didn't see delmar say that, either). What you say doesn't even hold true for a higher rate tax payer, who would get a net 3% after tax from a TSB Plus account. A BR tax payer would get 4% net. Which cash ISA do you / delmar recommend that is better?

innovate

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.

As you would expect, I disagree. The savings pages are very out of date, and the best savings rate isn't in a Santander 123 (even though that account still beats any instant access cash ISA rate).

If you want to hang on to any official MSE message, use this one: http://www.moneysavingexpert.com/savings/savings-loophole. It's not up-to-date or complete either but it happens to list the TSB Plus account that those in the know have recommended several times to the OP.

delmar39

jimjames wrote: »

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.



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.

Thanks for the reply I completely understand what you're saying and fully understand how to make my money work. I didn't think the OP was in a position to "use multiple current accounts" for example based on the fact that they haven't shifted the money already. Just my assumption so I suggested an 'easy' option with an improved interest rate and of course the OP can look at better options. ISAs are still an option and if you're with a decent building society (Nationwide for e.g.) you get decent rates for existing customers. If you have an ISA then as long as it's a top paying account then you cannot get any better than that in ISA terms. Some are happy with these rates, whilst being totally and fully aware that they may not be the best rates. All the best and thanks for the reply.

loonytunes123

Cheers mate, you talk a lot of sense, and help those who maybe are not as "astute" as us

innovate

delmar39 wrote: »

. ISAs are still an option and if you're with a decent building society (Nationwide for e.g.) you get decent rates for existing customers. .

Will you please explain why you recommend somebody should settle for less than £160 interest when they can earn £320?