Why do you leave it till now to use your 14/15 isa allowance?

CCFC_80

jimjames wrote: »

Why not just leave it in the 123 account to keep getting 3%?

Could be pulled back at anytime and better to use up your ISA allowance even at the stingy 1.3 % which is the best I am going to get with no restrictions.

Vortigern

CCFC_80 wrote: »

Could be pulled back at anytime and better to use up your ISA allowance even at the stingy 1.3 % which is the best I am going to get with no restrictions.

Any of those high interest current accounts could be pulled at any time, but I'll wait until they're pulled before I accept a rate as low as 1.3%

masonic

CCFC_80 wrote: »

Could be pulled back at anytime and better to use up your ISA allowance even at the stingy 1.3 % which is the best I am going to get with no restrictions.

So could the tax efficient status of ISAs.

CCFC_80

Vortigern wrote: »

Any of those high interest current accounts could be pulled at any time, but I'll wait until they're pulled before I accept a rate as low as 1.3%

I can't see the Santander 123 account paying 3% in a year from now. I'd rather stick it in an ISA so at least it's earning something and earning the tax free status. Plus you might find an improved ISA rate somewhere

masonic wrote: »

So could the tax efficient status of ISAs.

Unlikely I'd say at the moment but hey that's my opinion. My view is that the rate of The Santander 123 is more likely to drop then the tax free status of ISA's likely to get pulled.

edinburgher

I can't see the Santander 123 account paying 3% in a year from now.

Why? Pretty sure they've been paying it to me for just over 3 years now...

masonic

CCFC_80 wrote: »

I can't see the Santander 123 account paying 3% in a year from now. I'd rather stick it in an ISA so at least it's earning something and earning the tax free status. Plus you might find an improved ISA rate somewhere

Unlikely I'd say at the moment but hey that's my opinion. My view is that the rate of The Santander 123 is more likely to drop then the tax free status of ISA's likely to get pulled.

I think both are very unlikely in the short term.

There is a history of high interest current accounts going back over a decade. Look at this article from 2005 for example (Alliance & Leicester and Abbey, both mentioned in the article, were absorbed by Santander UK). I'd speculate these accounts have been around longer than ISAs.

PasturesNew

If you put it all in, you can't take it out and put it back... better to hang onto it and see what you want/need to use, then chuck it in at the last minute.

Although, for me, it's irrelevant as I don't have them.

colsten

CCFC_80 wrote: »

Could be pulled back at anytime and better to use up your ISA allowance even at the stingy 1.3 % which is the best I am going to get with no restrictions.

Hard to understand why you would settle for 1.3%. If you can lock your money up for the longer term, an S&S ISA and/or a pension would seem a lot more logical. If you are looking for instant access because you plan to spend some or all of your money in the next 5 or so years, there is very little interest rate risk in current accounts.

I think it's more likely that we see further banks offering interest paying current accounts than drops in what is already available.

The other consideration is the size of the ISA allowance. The vast majority of people don't have over £15K in savings so it would be easy to put the money into an ISA if the iSA paid better interest than current accounts.

jimjames

CCFC_80 wrote: »

Unlikely I'd say at the moment but hey that's my opinion. My view is that the rate of The Santander 123 is more likely to drop then the tax free status of ISA's likely to get pulled.

True but neither are very likely in my view, one even more remote than the other.

When other accounts pay 5% and Santander charge £2 and most people have under £2000 in savings I can't see any immediate reason why they would pull the account.

Vortigern

CCFC_80 wrote: »

I can't see the Santander 123 account paying 3% in a year from now.

I wonder what they'll call it when the rate drops? Santander 0.5|1.5|2.5?

...you might find an improved ISA rate somewhere

1. You're an optimist
2. Pigs might fly
3. If an improved rate comes along in April or later I'll transfer £15K in straight away