ISA and current account with same bank?

colsten

MoonJelly wrote: »

I can assure you that as sole trader OH pays more taxes than big companies (i.e. Amazon) wth far fewer perks.

Either I have not explained it very well or you have misunderstood what I said. How much tax you/your husband already pays has little if not no relevance to whether you can make more from a current account than from an ISA.

MoonJelly wrote: »

We are trying to follow the advice of Martin as part of our debt from an unsecured personal loan

If "Martin" anywhere on MSE suggests that cash ISAs are better than current accounts for most people, that article hasn't been updated in a long, long time. Some of the articles, such as the one about the savings fountain, have definitely been updated since cash ISAs have become highly unattractive.

bigadaj

MoonJelly wrote: »

I can assure you that as sole trader OH pays more taxes than big companies (i.e. Amazon) wth far fewer perks. We are trying to follow the advice of Martin as part of our debt from an unsecured personal loan:

I will have to think about opening another current account. We are quite happy with Nationwide and don't want to mess up our credit rating.

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Nationwide flex direct pays 5% for the first year.

MoonJelly

ViolaLass wrote: »

That's changed now.

I will check again with our CC bank. If conditions have changed that would be great!

colsten wrote: »

Either I have not explained it very well or you have misunderstood what I said. How much tax you/your husband already pays has little if not no relevance to whether you can make more from a current account than from an ISA.

If "Martin" anywhere on MSE suggests that cash ISAs are better than current accounts for most people, that article hasn't been updated in a long, long time. Some of the articles, such as the one about the savings fountain, have definitely been updated since cash ISAs have become highly unattractive.

That may be the case and yes I remember there was a cash fountain on that page . I intend to check the TSB account because as you say if they pay well then it may be the way to go.

bigadaj wrote: »

Nationwide flex direct pays 5% for the first year.

No can do. I worry the bank may want to take the money from one count to pay the credit card if both accounts are with Nationwide.

BTW thank you all for the advice. It is good to hear several points of view. I didn't even know a current account could pay more than a cash ISA. I certainly learned a lot today.
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Caladan

MoonJelly wrote: »

No can do. I worry the bank may want to take the money from one count to pay the credit card if both accounts are with Nationwide.
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If I recall correctly, the 'right of offset' only applies if you are in arrears, and even then, only if the arrears are serious and a demand has been made.

This means they will only use your current/savings account balance to pay an outstanding debt in very severe situations (it's not in the lenders interest to p*ss you off when overall you're a good customer with a short term problem). If you're thinking you might miss the odd payment, I doubt it would be an issue.

Still - Don't miss payments. At least make the minimums, it's not worth the damage to your credit history.

Disclaimer: This is my own, 100% unverified, understanding.