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What can I do with my savings?

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I have an HSBC cash instant access ISA with about £55k in it. Interest rates are dropping yet again to the extent it's barely worth having it! Have previously moved my ISA several times over last few years.

Are there any alternative options to an ISA that would generate a little more income? I could move it again of course but looking at the rates it would still be a pretty insignificant interest rate. My employment situation is a little uncertain at the moment so I am a bit loathe to tie the money up in case I need to fall back on it. Thank you for any advice.

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  • jimjames
    jimjames Posts: 17,681 Forumite
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    Do you need it all in cash? You could move some to current accounts paying up to 5% and some to a S&S ISA. Dividend yields are likely to be in the range of 3-4%.
    If you're working presumably income now isn't the primary reason for having the savings?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 44,637 Forumite
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    http://www.moneysavingexpert.com/savings/flexible-ISAs

    You might open a Flexdirect account with Nationwide and then switch the ISA to a Flexclusive ISA.

    You might then transfer £2,500 from the ISA into the Flexdirect account and make sure that you cycle £1000 in and out of the Flexdirect ( from an account with another financial institution) to get the 5% rate for a year on the current account.

    You might then open a couple of Tesco current accounts taking £6000 from your ISA - this would give you 3% on £6000.

    There are other high interest current accounts you could use, taking money from the ISA and moving it back before the end of the tax year to retain ISA status.

    You could then move it back in the new tax year and start all over again?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Many people say "I have", "I could", etc, when there are two of them in a relationship.


    If you do decide to go the current account route (and regular saver drip feed route), then your options are much better if there are two of you.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    houndtang wrote: »
    Interest rates are dropping yet again to the extent it's barely worth having it! Have previously moved my ISA several times over last few years.

    Running out of places to run to.

    It took me years to get to £40k, so I could qualify for the top tier interest rate for the First Direct cash ISA. I think I got 2% a few weeks, and then it went down.

    The cash ISA money is now in a S&S ISA, generating dividend.
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