Transfer ISA funds or look at regular savings?

mageliken

I currently have approx. £7,000 in a Nationwide ISA that is a couple of years old now. The rate has recently dropped to 0.75% and I'm looking to try to make these funds work a little harder for me.

I already have a maxed out TSB Current Account (5%), Nationwide FlexDirect Account (5%) and Club Lloyds (4%) and a small token £500 in a Vanguard LifeStrategy 80 S&S ISA from last tax year.

I've looked at the FirstDirect 6% (£300/mo limit) regular savings and also the Club Lloyds regular saver (£400/mo limit), and I'm a little discouraged as it would take 10 months to gradually reduce my ISA funds? How I see it, given that I have the funds now those rates are effectively reduced as I can only drip feed the balance.

I'm struggling to find an ISA that looks appealing (for transfer or otherwise), and perhaps the next current account on the list would be to look at the Santander account?

An alternative approach would be to start increasing the VLS 80%, which I think I will set aside at least 50% of my Nationwide ISA for in any event.

Based on what I anticipate being able to save this year and my out-of-ISA savings at the moment, I'm not too concerned if the solution leads to me essentially having no funds in a cash isa.

My question really is whether or not the above seems like a reasonable approach, and whether or not there is anything I'm missing? The decisions in terms of current accounts up until now have been fairly obvious to me, but the appealing options seem to reducing.

I'm only a basic rate tax payer.

piker1957

I would personally transfer to that S&S ISA. You sound as though you have enough cash for emergencies in TSB etc and by transferring to the S&S ISA you won't lose the tax free status on your £7000

soulsaver

Newcastle BS has a regular saver cash ISA, maybe 'Big Home Saver' Isa that pays 2% variable and you can pay in £1250 pm - instant access, but has strings - make sure you understand it, if interested.