new PSA allowence

james3333

hi all,
damn this new PSA is really confusing....
wondering what i should do with my savings now...

i have 5k in savings, in an ISA that will mature to 0.25% in a few weeks with halifax
i dont intend to spend it soon, but i dont intend to add to it either
i have seen tesco are offering a current account at 3%, should i lump the whole 5k into this account?
what are the pitfalls of this?
or indeed benefits?

thanks

james

jimjames

Benefits? You get 3% not 0.25%. Pitfalls? You lose that part of your ISA allowance but for £6k that's irrelevant. You'd need 2 tesco accounts though

james3333

thanks, just paranoid about taking it all out, was always advised not to take out as you cant put the lump back in....
PS could i open x2 accounts in my own name with tesco or would it have to be in a second name?
thanks

Vortigern

Don't be paranoid. You could put it all back in an ISA anytime within the next year, but it probably wouldn't be worth doing.

You can open 2 Tesco current accounts in your own name. Put £2500 in each, they pay 3% interest on up to £3000

james3333

awesome, i have just applied for one tesco account and saved an application for a second
(i assume if i just put 2 applications throught at same time, with all same details they will assume i have filled the form out twice in error...so im gona wait til the first account is 'live, then apply for the second)

thanks everyone, feel more at ease now doing this!
:money::money::money:

Flobberchops

james3333 wrote: »

thanks, just paranoid about taking it all out, was always advised not to take out as you cant put the lump back in....

Well, you can now, as cash ISAs have flexible subscription rules as of today. £6k is an amount that would be possible to remove and then pay back in under the old rules anyway, and would have left you with over £9k of wriggle room.

It's a moot point as you shouldn't be touching a 0.25% ISA with a ten-foot bargepole!

LuSiVe

james3333 wrote: »

awesome, i have just applied for one tesco account and saved an application for a second
(i assume if i just put 2 applications throught at same time, with all same details they will assume i have filled the form out twice in error...so im gona wait til the first account is 'live, then apply for the second)

thanks everyone, feel more at ease now doing this!
:money::money::money:

Why not a TSB account that pays 5% ?

colsten

Flobberchops wrote: »

Well, you can now, as cash ISAs have flexible subscription rules as of today.

There are no flexible subscription rules - subscription limit is still the ISA allowance, £15,240 this year. "Subscription" means new money - so money you took out of the ISA and put back in in the same tax year does not count as a subscription.

Under the new ISA flexibility rules, some, but not all, ISA providers allow you to take out money and pay up to the same amount back in within the same tax year on some but may be not all their ISAs. If you are interested in the money see-saw, you need to examine the T&Cs that apply to your ISA.

Not that any of this matters much if the total sum of savings is £5Kish. A sum this low should be kept in one or more interest-paying current accounts and/or regular savers, where it can earn 5%+ AER, probably tax free.

james3333

LuSiVe wrote: »

Why not a TSB account that pays 5% ?

hi, i already have a TSB current account for my wedding fund savings :money::money: but thanks.

badger09

james3333 wrote: »

hi, i already have a TSB current account for my wedding fund savings :money::money: but thanks.

Are you (and your fiancee) first time buyers by any chance? If so a Help to Buy ISA exch, with someone like Santander, would be a good choice for some of your savings;)

jrsga

Hi

I have a savings account paying 1.31%
I also have a cash ISA paying 1%
Now that PSA has arrived is it worth depositing this years ISA allowance from the savings account into the ISA or leave it in the savings account?

Can someone enlighten me which is worth doing and if there is a crossover point at which its best to leave it in one or the other?

thanks