Nationwide launch new 5 per cent regular saver for current account customers

Steve_xx

catoutthebag wrote: »

Not sure what to do. I've opened this account as I have a wide range of product with them

I've got about 10k saved in their 1.6% or whatever isa. Shall I transfer all this out to the 5% and leave it til Dec 2016 and put it all back into a new isa from Jan 2017? I'm a basic tax payer but sometimes higher rate sneaks in. Self employed.

I've got about 7k saved for my tax return among their regular saver and 15yr loyalty saver. I could shut these down and pit it into their 5% thing. I could then put away at least £500 a month for income tax. But I won't get interest above 500£...doesn't bother me too much. I'd be putting away maybe 700 to 1000 I think.

Or just save my maximum of about £100 a month spare cash into it on its own.

Amy number crunchers know mg best way forward please?

There's a lot to your question.


If you remove cash from your existing cash ISA, you wont be able to put it back and the tax wrapper is effectively off that cash. Also you can only put £500 a month into the new Regular saver, so hardly worth withdrawing all of your 10k ISA at once.


Who knows what the situation be in 12 months time!

lazer

bsms1147 wrote: »

Will any of them come to the end of their 12 months soon, allowing you to use those funds to pay into other regular savers?

No the TSB and First Direct are about 2 months old, opened when the last FD one matured.


I also need to lift £2k out of savings very soon, so FD will probably be the only one getting any decent amount put into it!

lazer

Steve_xx wrote: »

There's a lot to your question.


If you remove cash from your existing cash ISA, you wont be able to put it back and the tax wrapper is effectively off that cash. Also you can only put £500 a month into the new Regular saver, so hardly worth withdrawing all of your 10k ISA at once.


Who knows what the situation be in 12 months time!

This may not be true, when did you put the £10k into an ISA, was it since 5th April 15?


If it was before you can withdraw it and put it back in (as long as no other ISA's active in the year)


You could withdraw £500 per month from the ISA and put it into the regular saver.

catoutthebag

catoutthebag wrote: »

Not sure what to do. I've opened this account as I have a wide range of product with them

I've got about 10k saved in their 1.6% or whatever isa. Shall I transfer all this out to the 5% and leave it til Dec 2016 and put it all back into a new isa from Jan 2017? I'm a basic tax payer but sometimes higher rate sneaks in. Self employed.

I've got about 7k saved for my tax return among their regular saver and 15yr loyalty saver. I could shut these down and pit it into their 5% thing. I could then put away at least £500 a month for income tax. But I won't get interest above 500£...doesn't bother me too much. I'd be putting away maybe 700 to 1000 I think.

Or just save my maximum of about £100 a month spare cash into it on its own.

Amy number crunchers know mg best way forward please?

Adding to this

Most my 7k will go in January for tax return. But I've got a few k to add befure then and ill rebuild after Jan anyway. Then some goes for July. I guess withdraws are allowed?

You're right - best not to remove from tax wrapper.

And I guess better than saving a mere £100 residual for myself than the full 500.

catoutthebag

lazer wrote: »

This may not be true, when did you put the £10k into an ISA, was it since 5th April 15?


If it was before you can withdraw it and put it back in (as long as no other ISA's active in the year)


You could withdraw £500 per month from the ISA and put it into the regular saver.

That might be am idea. I've hardly put jn anything from April. ..maybe a few k...I'll need to double check. So anything befure April can be withdrawn without penalty and then put into a new isa from Dec 2016 once this subscription expires?
And if I withdraw amounts I lose those amounts from the current years subscription? Or did j read these rules have or about to be changed?

catoutthebag

Oh and I've got 1k in ss isa wrapper (vls) - does that complicate anything? I think it was befure April 15 (in answer to your other subscription question )

jimjames

catoutthebag wrote: »

Oh and I've got 1k in ss isa wrapper (vls) - does that complicate anything? I think it was befure April 15 (in answer to your other subscription question )

No. S&S ISAs have no impact on HTB other than needing to keep to the overall limits

jimjames

Steve_xx wrote: »

If you remove cash from your existing cash ISA, you wont be able to put it back and the tax wrapper is effectively off that cash. Also you can only put £500 a month into the new Regular saver, so hardly worth withdrawing all of your 10k ISA at once.

If the return after tax is lower then the cash ISA is totally pointless so it is worth removing from the tax wrapper if you can get better outside an ISA - which you can easily do for £10k. If it's money to pay tax in January then long term tax wrapper is even more irrelevant.
Even if you did want to put it back with an ISA limit of over £15k now it's very easy to do that if you somehow managed to find an ISA account paying more than a taxable one.

catoutthebag wrote: »

That might be am idea. I've hardly put jn anything from April. ..maybe a few k...I'll need to double check. So anything befure April can be withdrawn without penalty and then put into a new isa from Dec 2016 once this subscription expires?
And if I withdraw amounts I lose those amounts from the current years subscription? Or did j read these rules have or about to be changed?

ISA limits are based on tax year so April to April. When you can get 5% outside an ISA in a current account it makes the tax wrapper pointless, especially after April 2016 when you have a tax free interest allowance anyway. You would lose any amounts from your allowance that you withdraw but that's not a problem when you can beat those rates anyway.

bsms1147

Anyone know how to set up a standing order from an external current account into one of these? Is it possible?

Paying money in
You can pay money in:
By setting up a regular or one-off payment from a current account

FAQ
You can also transfer money online from an existing Nationwide or another current account by setting up either regular or one-off payments into your Flexclusive Regular Saver account.

Account number is 1234/123456789 so if it is possible, can't see how.

le_loup

SevenOfNine wrote: »

I've got a sole Loyalty Saver a/c....what a nit, didn't occur to me to just use that! Assume I can then fund each month from one of the joint accounts.

It took me two attempts as well - my first was from a joint account - before I twigged that I could transfer from the sole accounts.