What's the best way to save, ISA or 5% interest account?

lanceuppercut

Have a TSB current account, the one that offers 5% on £2000 balances provided their conditions are met.

Which is the best way to "fill" the accounts up, max the £2000 on the TSB account then the rest into my Natwest ISA?

Or the other way around?

grumbler

lanceuppercut wrote: »

Which is the best way to "fill" the accounts up, max the £2000 on the TSB account then the rest into my Natwest ISA?

I am sure there are many other accounts paying higher net interest than your ISA.

MSE article: Top Savings Accounts

Or the other way around?

How can this be the best way?
Only if you want to use this year's full £15K allowance you do need to fill your ISA, but you have time until April to do this.

softmind82

Wondering why I got paid only £3.10 to TSB account when I paid into my account £4000.


That was my first month with TSB.

YorkshireBoy

softmind82 wrote: »

Wondering why I got paid only £3.10 to TSB account when I paid into my account £4000.


That was my first month with TSB.

Two reasons...


1. You deposited half way through the month, and


2. £2K of your cash wasn't earning any interest at all!

GTR_King

Best idea to have £1500-£1800 in TSB Classic Plus A/C & Rest in another % A/C Or another bank if u feel like

colsten

GTR_King wrote: »

Best idea to have £1500-£1800 in TSB Classic Plus A/C & Rest in another % A/C Or another bank if u feel like

Boy oh boy.

Should you be giving others advice if you didn't understand yourself why you should be opening a second TSB Plus yourself?

I seem to remember the last reason you gave for not applying for a second TSB Plus was "Nothing I have opened 1 for now & Barclays A/C But thanks for your help". Which seems to suggest you don't have a clue about maximising interest from current accounts.

OP, before Jan 31st, you should be able to apply for a 2nd TSB Plus, giving you another 5% AER on up to £2000. Apply NOW. Without being logged in to your TSB online banking app, as has been reported by countless forumites.

mozzy10

GTR King you make my head SPIN!!!!

Colsten is RIGHT. This is exactly what I did based on advice from this forum. I now have 2 TSB accs with £2000 in each which combined will earn me about £14 in interest every month.
I am ditching my ISA and moving most of my money to current accounts until the ISA interest rate picks up again.

Why on earth are you advising to only have £1500-£1800 in the account?
They pay interest on the first £2000 in the account.
You seem to think that if you go over £2000 you won't get any interest??

You will get interest on the first £2000, anything after that is ignored but it won't cancel out your interest.

colsten

mozzy10 wrote: »

GTR King you make my head SPIN!!!

Yours and everybody else's, apart from GTR King's one, which seems to be in default spin mode.

lanceuppercut

colsten wrote: »

OP, before Jan 31st, you should be able to apply for a 2nd TSB Plus, giving you another 5% AER on up to £2000. Apply NOW.

I thought you were only allowed 1 TSB account and the other had to be a joint one? (I did not join before the limit was cut from 2 private+2 shared to the current numbers)

inspireme247

lanceuppercut wrote: »

I thought you were only allowed 1 TSB account and the other had to be a joint one? (I did not join before the limit was cut from 2 private+2 shared to the current numbers)

I managed to apply for second account last month, you just need to make sure you're logged out first before you can apply.

lanceuppercut

inspireme247 wrote: »

I managed to apply for second account last month, you just need to make sure you're logged out first before you can apply.

So you managed to get a 2nd single account? Interesting, as the wording suggests it needs to be a joint account..