£5.5k maturing Cash Isa - New Isa best option?

purplemusky

Hi I have about £5.5k in a cash ISA which comes to the end of it's fixed term in about a week.

What are my best options do you think? I have seen a two year fixed Isa with the Principality for 1.85%.

I am happy to lock away for 2 years and don't need access to it, but I'm not sure if this is the best option.

Thanks

colsten

A cash ISA for £5.5K makes no sense. If you are after best interest rates: https://forums.moneysavingexpert.com/discussion/5374614

jimjames

It certainly isn't the best option to get most return. Depends if you want a cash ISA or if you want the best interest rate. You'll get 5% outside an ISA

xylophone

You could have £2000 in a TSB Plus, £2500 in a Nationwide Flexdirect and £1000 in a Tesco current account.

You would transfer £1000 from TSB to Nationwide and back again on the same day each month to comply with the monthly pay in requirements.

You would send the monthly interest accruing on TSB and Nationwide to Tesco.

You think again about Nationwide after a year - a transfer bonus might be possible, or transfer the money to Tesco and open a second Tesco current account etc....

Eco_Miser

Remember that from April, Basic Rate taxpayers can have £1000 interest tax-free. Makes cash ISAs pointless for nearly everybody.
If you do what xylophone describes in the post above, you can also open a TSB monthly saver, also 5% AER, and transfer the money in Tesco, plus the interest, plus further savings, there for even more interest.