To keep my cash ISA or not?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
6 replies 1.7K views
Warren1Warren1 Forumite
9 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hello,

I apologise if this question has been asked previously, I have tried looking through the thread already but couldn't find the direct answer, but feel free to comment with a helpful link.

I've just opened my HTB ISA at Nationwide back in February as they offered the split HTB ISA at 2% and 0.75% for the rest of cash which i transferred in from another bank. I now have £6200 in my cash ISA and I drip feed in money to my HTB every month, i'm just debating is it worth keeping my money 'wrapped' in its Cash ISA benefit or should I just reap the benefits of Nationwide's 5% regualr saver and TSB's classic plus account which is offering 3% on £1500 (i'm aware you can have two)?

I would appreciate any help, cheers everyone:T

Replies

  • masonicmasonic Forumite
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    You can no longer have two TSB accounts in your sole name.

    Nationwide cash ISAs are flexible, are they not? So you could flexibly withdraw the money you deposit in the current accounts, then return it before the end of the tax year if you wanted to preserve the ISA status of the money. The regular saver does permit early access, but you might choose to keep the money in that account for 12 months. Don't forget about the Nationwide FlexDirect account, also paying 5% if you haven't held one within the last year.
  • Warren1Warren1 Forumite
    9 Posts
    I can't get the Flex Direct at the moment as i'm a student I can't fund the £1000 requirement per month. I currently have two TSB classic plus accounts as I've had them a few years when they were previously offering 5% and you were allowed two, which is why i'm thinking to transfer £1500 in to each TSB account, a further £2500 in to the my Nationwide Flex plus account (which pays 3%, but does have the £10 fee) leaving me £700 in my Cash ISA
  • badger09badger09 Forumite
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    Warren1 wrote: »
    I can't get the Flex Direct at the moment as i'm a student I can't fund the £1000 requirement per month. I currently have two TSB classic plus accounts as I've had them a few years when they were previously offering 5% and you were allowed two, which is why i'm thinking to transfer £1500 in to each TSB account, a further £2500 in to the my Nationwide Flex plus account (which pays 3%, but does have the £10 fee) leaving me £700 in my Cash ISA

    Have you actually tried?

    The £1k per month doesn't have to come from salary. It can come from your TSB account.

    That's not to say you'll be accepted, but you won't know unless you apply;)
  • masonicmasonic Forumite
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    Warren1 wrote: »
    I can't get the Flex Direct at the moment as i'm a student I can't fund the £1000 requirement per month. I currently have two TSB classic plus accounts as I've had them a few years when they were previously offering 5% and you were allowed two, which is why i'm thinking to transfer £1500 in to each TSB account, a further £2500 in to the my Nationwide Flex plus account (which pays 3%, but does have the £10 fee) leaving me £700 in my Cash ISA
    It's a complete no brainer to transfer money from your ISA into these accounts paying a much higher rate of interest. Especially since you can get the best of both worlds by returning the cash to the ISA for a few days when the tax year rolls over. As badger says, being a student may not prevent you getting a new FlexDirect account - it's not as though you are not already a current account holder at Nationwide, so that may make things even easier.
  • Warren1Warren1 Forumite
    9 Posts
    Cheers, Masonic and Badger,

    I'm definitely going to be using the advice you've given! I sometimes feel I can get more information from this forum and the website than the banks tend to offer.
  • jimjamesjimjames Forumite
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    Warren1 wrote: »
    I sometimes feel I can get more information from this forum and the website than the banks tend to offer.
    There's a good reason for that - posters here can give an unbiased view of the best options across the whole industry. A bank can only tell you what products they offer and even then you'd need to ask the right question as I'm sure if you ask "what's your best savings account" they wouldn't tell you about current accounts.
    Remember the saying: if it looks too good to be true it almost certainly is.
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