NISA or Santander 123?

Edelman

In theory.... if you put the lot in 123... and then rates changed on it (is this easy to be told about?), then you could move that money over to a NISA, and just keep the account as a current account.

Chorlie

brewerdave wrote: »

I've opened a Santander fixed 2 year ISA @ 2.3% for this tax year which I've filled to the pre July 1st allowance (£5940) -the debate I'm now having with myself is whether I trust Santander to maintain the 3% gross on our current account for at least the next two years(currently ~ £20k in it)...or whether to top the ISA up to £15k in case the bankers drop the 123 interest rate...decisions,decisions....;)

I did the same, but my thinking was the difference of 0.1% (before the £2 account fee) and only having until Aug to top the ISA up to the max I wacked the extra £9060 into it yesterday.

Also I have a Lloyds Vantage Account, so with the rate dropping on that today I moved that money to Santander 123.

brewerdave

Edelman wrote: »

In theory.... if you put the lot in 123... and then rates changed on it (is this easy to be told about?), then you could move that money over to a NISA, and just keep the account as a current account.

No..I couldn't open another cash NISA in this tax year -after 31st August can't top up the Santander fix so all I could do is open a S & S ISA for myself to move the Santander money to,if the rate dropped alarmingly....not keen at the moment on more exposure to the market..my OH has a S & S ISA for this tax year and don't want to feed more in with the market so strong.
I suppose that the 123 account may keep its premium rate for the moment....:) I wonder how much extra cash has flowed into Santander over the past 18 months ...must be a colossal figure??

Herbalus

brewerdave wrote: »

I've opened a Santander fixed 2 year ISA @ 2.3% for this tax year which I've filled to the pre July 1st allowance (£5940) -the debate I'm now having with myself is whether I trust Santander to maintain the 3% gross on our current account for at least the next two years(currently ~ £20k in it)...or whether to top the ISA up to £15k in case the bankers drop the 123 interest rate...decisions,decisions....;)

The difference of 0.1% on £9,060 is only £9.06 per year, so the difference is negligible. I'd put it in the ISA.

Unless you'd think the government could do with the increased revenues by you choosing the taxable option!

Edelman

So comparing that with what I originally asked: is it a no-brainer:
NISA... or stick the lot in a 123..?
I know the 123 is taxed, but does it work out better off in there or in an NISA?

Herbalus

Edelman wrote: »

So comparing that with what I originally asked: is it a no-brainer:
NISA... or stick the lot in a 123..?
I know the 123 is taxed, but does it work out better off in there or in an NISA?

You can't get the Santander 2.3% NISA anymore, and it isn't easy access like you want.

So, as I said earlier:

Herbalus wrote: »

If you just want one place, go for Santander.

Because

Herbalus wrote: »

No easy access ISA comes close.

Simples

Edelman

I didn't ask about that Santander ISA - this is only about comparing current NISAs with easy access, against the Santander 123 account.

Even tho I think 123 is taxed, does it work out better for you, than a NISA that has easy access?

colsten

Edelman wrote: »

I didn't ask about that Santander ISA - this is only about comparing current NISAs with easy access, against the Santander 123 account.

Even tho I think 123 is taxed, does it work out better for you, than a NISA that has easy access?

What is the best interest rate can you get in an ISA now?

What is your tax rate? Assuming it is basic rate, it's dead easy to work out. the 123 is 2.4 AER after BR Tax, and ignoring the £2/mth charge.

So you compare the 2.4% with whatever you can get elsewhere. Then you consider whether you would be better off a few years down the line if you had used some or all of your 2014-15 ISA allowance. Then you decide. Nobody can make the decision for you.

bryanb

Herbalus wrote: »

No.

You don't even need to do the calculations to see how much you'd get.

Santander 123 is 3%, so 2.4% after basic rate tax. No easy access ISA comes close.

Coventry reward ISA Instant access- 2.5%.
I have one, but it's only for customers who had an ISA with them on a date I can't remember

bryanb

Cornucopia wrote: »

Better than all instant access ISAs.

Except one, see above