Current Accounts V ISA?

Bigbudge

I have about £10,000 in an ISA that currently earns under 1% this has drooped over the years from around 3%. Tesco now are entering the Current account arena and offering 3% interest on balances of £3000 as long as you pay in £750 per month and TSB doing a similar deal. Is this the time to open several accounts and keep the required amount in each account and have the surplus ie £750 for Tesco, moved by standing order between the accounts each month and collect interest from each account.


I may be missing something but this seems to be a great way to get a better interest from my cash I have in my ISA. Given that my wife has a similar amount in her ISA this amount would be doubled

kidmugsy

The idea is fine but check the accounts at Lloyds (Club: 4% on £4k - £5k), TSB (Plus: 5% on up to £2k, but you can open two each and two joint), and Nationwide (FlexDirect 5% on up to £2.5k, one each plus one joint). You will have to check what they want by way of monthly deposit, and direct debits. The TSB accounts make very few demands - mainly that you operate them "paperless".

dale_cotterill

If you intend on using your full ISA allowance every year (15k from Jul) then it isn't a good idea to withdraw anything.

Otherwise using the current account rate is a far better idea.