Small amount...what to do with it?

KirstyO

Hi everyone,

I have a small ISA maturing in October, somewhere around £2150.
I don't know what to do with it next now that interest has dipped again and rates are lower than ever. I'll be using the £150 to clear a CC, and the rest is designed to be the start of a retirement pot so can go down the following paths:

> Return to a savings account/ISA (fixed or access, not bothered as i'm not planning to spend it)
> Stick it in my regular bank account (currently 5% interest up to 2k...I suppose this way I would be getting my full interest quota each month!)
> Some other form of bond where I won't lose any value on my investment

Any thoughts would be gratefully received!

xylophone

Open a Nationwide Flexdirect account, cycle in/out £1000 a month to comply with account conditions and reconsider after a year.

Or, if you are sure that this is retirement provision, add it to your pension?

Pincher

KirstyO wrote: »

.> Stick it in my regular bank account (currently 5% interest up to 2k...I suppose this way I would be getting my full interest quota each month!)

Don't you need another bank account to move money back and forth?

Share an Introduce a Friend Bonus by opening a Nationwide FlexDirect account. 5% on up to £2,500, and start a 5% Flex Regular Saver, when you have extra money.

Kim_13

Pincher wrote: »

Don't you need another bank account to move money back and forth?

Share an Introduce a Friend Bonus by opening a Nationwide FlexDirect account. 5% on up to £2,500, and start a 5% Flex Regular Saver, when you have extra money.

You would, but it sounds as though the OP has her salary paid into TSB to meet the pay in requirement, rather than needing to transfer money between accounts.

Opening a Nationwide account is a good bet, as if the money is kept away from your usual account, it removes temptation to spend it.

Another account might be needed after a year though, when the FlexDirect interest reduces to 1%. Unless of course you were using TSB for interest and Nationwide for spending, so you might not be too concerned about the interest on it.

jimjames

You can't beat 5% that you'd get from your current account but it might be worth opening another paying 5% like Nationwide so you can get interest on the total amount. Otherwise you are likely to be going above £2000 when other money is paid in for bills etc.
For £2000 a cash ISA is completely pointless but as above if it's really for a pension then saving in cash is a very bad idea as it will lose out to inflation long term. (unless you're currently age 60 and need to have cash available)

badger09

jimjames wrote: »

You can't beat 5% that you'd get from your current account but it might be worth opening another paying 5% like Nationwide so you can get interest on the total amount. Otherwise you are likely to be going above £2000 when other money is paid in for bills etc.
For £2000 a cash ISA is completely pointless but as above if it's really for a pension then saving in cash is a very bad idea as it will lose out to inflation long term. (unless you're currently age 60 and need to have cash available)

care to expand jj?

KirstyO

Thanks all, I don't actually use my tsb account for my salary so it's functioning on the minimum pay in per month at the moment, if I'm honest I'm happy filling it up with this 2k then paying in 500 a month to fulfil the pay in then transferring anything over 2k elsewhere. The nationwide one sounds good, I'll investigate!