What account should I take out?

sufcboy

Hi,
Im really stuck with what I am best doing with my bank accounts.
I currently have a h2b isa which I am putting money into every month. However I also have an old cash isa with just over £5000 in it, which Ian obviously just sat there doing nothing. What am I best doing with the old cash isa?
I don't think the Santander 123 would be any good as I'm still living with parents so don't have any bills coming out (other than phone and gym).
The other account I have is my normal Barclays debit card.

sufcboy

Also to add. Ideally I don't want the old cash isa and debit account joining together as I don't want to spend the old cash isa. If anything would like to add to it

xylophone

Consider giving up the ISA status.

Consider a couple of Tesco current accounts.

Three thousand in one, two thousand in the other and move the interest from one to the other monthly.

Or open a Nationwide Flexdirect current account (£2500) and a Tesco current account (£2,500).

Move £1000 in and out of FlexD monthly. Move the interest from FlexD to
Tesco.

There is also a Flex monthly saver available with FlexD.

You might find a switching offer available to you at the end of the FlexD 5% year - and/or open the second Tesco then if it is still worth it.

colsten

xylophone wrote: »

Consider a couple of Tesco current accounts.

Three thousand in one, two thousand in the other and move the interest from one to the other monthly.

Put £2,500 into each and save yourself the monthly moving of interest.

savings_my_hobby

get the maximum returns you can.
Take advantage of the 5% nationwide flexdirect for the first year, reassess in a years time.

add a halifax reward account too for an extra £3 per month without even tying up any money, I think the coop has a similar type of account too.

You can earn £1000 in interest outside of your ISA's tax free.
Save more and aim to fill ALL accounts and dripfeed into regular savers.
Hence the opening line; get the maximum returns you can.

markwilkinson

Nationwide flex direct will give you 5% on £2.5k. A Tesco current account will give you 3% on the other £2.5k. Flex Direct requires funding with £1000 each calendar month, so just transfer from Tesco and back again. If you want to add to the existing 5k the flex direct will give you access to a 5% regular saver for up to £500 per month. All interest paid tax free, due to the £1000 personal allowance, so don't worry about dropping the ISA status.

MyOnlyPost

Open a Tesco Bnak account and put £2500 in it for 3% interest. Simultaneously open a basic current account anywhere but Halifax or Nationwide and put the other £2500 in it. Once opened switch to Halifax using there switching service for a free £100 paid inside 10 days. Add 2x direct debits to the account as soon as you can, if you don't have any there are lots of ideas in the forum of how to get them at no cost. Then if you have a friend or relative with a nationwide account get them to refer you, if not take a referral from the referrals board here and switch your new Halifax account to Nationwide using their switching service and Nationwide will add £100 to your account too AS WELL AS giving you 5% interest for 12 months

Inside two months you will be £200 richer and earning 4% interest. Always filter interst to the highest rate that hasn't reached the limit of the account

sufcboy

So can I still add extra money to these accounts. As I'm still wanting to save more than just the 200 in htb isa.

badger09

sufcboy wrote: »

So can I still add extra money to these accounts. As I'm still wanting to save more than just the 200 in htb isa.

They are all current accounts, so of course you can add money to them. You can also take money out of them, so you'd have to trust yourself not to spend it;)

I suggest you look at the websites for the accounts mentioned, read the T&Cs then come back if you have any questions.

sufcboy

Right so from reading what people have put and looking around the site, this's is what I'm thinking.

Still going to have h2b isa and keep paying £200 in a month.
Open a nationwide flex direct put £2500 in it out of old cash isa.
Open a Tesco account and put £3000 in it.
So obviously I need to pay in 1000 each month to the nationwide so could I just transfer 1000 out of the Tesco account and then back again? And still receive the max interest?

ColdIron

sufcboy wrote: »

so could I just transfer 1000 out of the Tesco account and then back again? And still receive the max interest?

Yes, it doesn't need to stay there. If you set up two opposing standing orders it will look after itself. Avoid the end of the month in case of bank holidays and weekends