£10k in savings a/c, £5k in ISA, poor interest- what to do?

techwatcher

I have had a savings account with Barclays forever and it currently has £10,000 in it. I also have a Cash ISA with Barclays with £5500 in it. Just realised that the savings account is paying 0.25% and the ISA 0.8%.

I would like a higher return and will move the £10k to a higher rate current account elsewhere. Question is what to do with the ISA? Is there any point continuing with it or should I withdraw the money and place it in a higher-rate current account also?

Futuristic

There is no point of having ISA at this moment of time unless it's for Stocks & Shares. Even with tax you will get MUCH more from current accounts.

http://www.bankaccountsavings.co.uk/

jimjames

Current accounts definitely the way to go to maximise interest. Getting 5% on over £10k here

droopsnoot

I hate to lose the tax-free advantage that ISAs bring, but it depends on your circumstances - if £5500 is the total of all the money that you have in ISAs everywhere, it doesn't make any difference if you withdraw it now to get better interest in current accounts. It only matters if you withdrew more than the annual ISA limit (~£15k), then the interest rates changed and you wanted to put it back into ISAs.

techwatcher

Thanks all; the £5500 is the total of all the cash I have in ISAs everywhere, so it's off to a higher-rate current account it goes.