Best account for my savings.

clare34

I have an ISA with Barclays which I have one thousand pounds in, and 500 hundred pounds in a Lloyds easy saver account.


I have read that now it is better to save with a current account rather than an ISA, and was wondering if I should move all my money into my Lloyds easy saver?


I have a poor credit rating so am not able to open another bank account.

droopsnoot

The point about current accounts being "better" is that, at the moment, it's hard to find a cash ISA that will give as much interest as some current accounts do, as long as you can fulfil the criteria of those accounts which usually includes paying in a certain amount per month, and having some other activity such as direct debits etc.

Whether it works better for you depends on your circumstances. You can only put so much into a cash ISA per annum (currently £15240), and once the tax year is finished you lose that allowance for the year. So if you want to get as much money into tax-free savings accounts, it seems a pity to throw that away. However if the £1000 is realistically the maximum you'll be saving at least for now, it probably won't make much difference. But you'll only be better off if you fulfil whatever terms the current account quotes to get the better rate.

jimjames

clare34 wrote: »

I have an ISA with Barclays which I have one thousand pounds in, and 500 hundred pounds in a Lloyds easy saver account.


I have read that now it is better to save with a current account rather than an ISA, and was wondering if I should move all my money into my Lloyds easy saver?


I have a poor credit rating so am not able to open another bank account.

Put the money into whatever account pays the best rate of interest whether ISA or not. With the amounts you're looking at the difference in interest in an ISA vs savings will be very low but every little helps.

eskbanker

clare34 wrote: »

500 hundred pounds in a Lloyds easy saver account.

With £50K in the bank you'll hopefully be able to improve your credit rating soon!

As above, there's unlikely to be a hugely significant difference in rates you'll have access to without a credit check, but no harm in shopping around at http://www.moneysavingexpert.com/savings/savings-accounts-best-interest and http://www.moneysavingexpert.com/savings/best-cash-isa