ISA Vs 123 Acc

buzzlightweight

I am wondering which is better to use, i understand there are many variables, 123 is subject to tax, ISA's are fixed or instant access etc
I can lock away my money for two years poss three but i would like to have access.
I bank with FD and i love them but i will move my acc fully to the 123 if it proves to be the better option.

So which would suit me more?

Many thanks

colsten

If you are a basic rate tax payer, and if you are planning to spend your money in the next 2-3 years, there is not much point in a cash ISA. You will do a lot better with a 123, TSB Plus, Tesco, Club Lloyds, BOS Vantage etc.

buzzlightweight

I am a 20%er and yes after 3 three years of saving i will be buying a house (hopefully!)

ty, i will open a 123, my only dilema is that i will fill it up and have to use an ISA for a while for the remander

colsten

buzzlightweight wrote: »

my only dilema is that i will fill it up and have to use an ISA for a while for the remander

Why? There are all the other accounts I mentioned. They will take some £50,000 between them. I love the 123 account (it's my main account) but would start with two TSB Plus if I were you, anyway, because they pay a lot more interest than anything else.

buzzlightweight

colsten wrote: »

Why? There are all the other accounts I mentioned. They will take some £50,000 between them. I love the 123 account (it's my main account) but would start with two TSB Plus if I were you, anyway, because they pay a lot more interest than anything else.

thats good advise, thank you, i will open the various acc's and just leave the cash in them

thnak you for your time