Leave it where it is or move it?

Zola.

I have some savings in my Santander 123 Current account and I make use the 5% deals at TSB and Nationwide, shuffling the money around each month, along with the Halifax reward etc.

I also have a Nationwide 2 year ISA with just over 6k in it @ 2.10%, it matures next September I think.

Would I be better off taking that money out of the ISA and moving it into Santander 123, or leave it where it is?

Any help appreciated.

badger09

Zola. wrote: »

I have some savings in my Santander 123 Current account and I make use the 5% deals at TSB and Nationwide, shuffling the money around each month, along with the Halifax reward etc.

I also have a Nationwide 2 year ISA with just over 6k in it @ 2.10%, it matures next September I think.

Would I be better off taking that money out of the ISA and moving it into Santander 123, or leave it where it is?

Any help appreciated.

You would usually compare the ISA rate 2.1% with the after tax rate elsewhere - so Santander 3% = 3% for non taxpayer, 2.4% for basic rate taxpayer and 1.8% for a higher rate taxpayer.

However, if your current ISA is a 2 year fixed rate ISA, there will be a penalty for early withdrawal/closure, which could easily wipe out any possible gain from a slightly higher rate outside it.

What do the T&C of your ISA say?