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ISA or savings account ?

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Hi
I'm not really sure what to do, I put 5k in an isa a couple of years back but the interest is worth nothing now

Pays out in August and I get Next to nothing

I want to buy a house in 1-2 years. I'm not sure what to do... my question is: do I get an isa and be willing to pay a get out fee ? Or is it higher paying interest in a savings account ?

I'm really not sure what the best thing to do is. I will potentially need access to that money, and just want the best interest !

I also have a help to buy ISA which I put the max of 200 pounds a month and have been for a while now.

Do I lump everything in one ISA or 1 savings account or best to keep separate ? I can't put the 5k in help to buy

Any suggestions ? Any advice very much welcomed and appreciated

cheers !

Comments

  • eskbanker
    eskbanker Posts: 31,604 Forumite
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    (Non-HTB) cash ISAs and savings accounts are paying derisory interest rates these days, so your best bet is likely to use high-interest current accounts and/or regular savers, see the quick link further up the page labelled 'how to start saving' for ideas.

    For example, you can get 5% on £2,500 in a Nationwide FlexDirect current account and another 5% on up to £500 per month in the associated Flexclusive regular saver account, whereas cash ISAs and typical savings accounts are in 1% territory....
  • jimjames
    jimjames Posts: 17,681 Forumite
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    On £5k you can get 3%-5% interest outside an ISA so I certainly wouldn't bother with one other than HTB ISA. Look at regular savers and current accounts instead
    Remember the saying: if it looks too good to be true it almost certainly is.
  • elephantrosie
    elephantrosie Posts: 467 Forumite
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    eskbanker wrote: »
    (Non-HTB) cash ISAs and savings accounts are paying derisory interest rates these days, so your best bet is likely to use high-interest current accounts and/or regular savers, see the quick link further up the page labelled 'how to start saving' for ideas.

    For example, you can get 5% on £2,500 in a Nationwide FlexDirect current account and another 5% on up to £500 per month in the associated Flexclusive regular saver account, whereas cash ISAs and typical savings accounts are in 1% territory....

    i am only getting 0.5% on my cash ISA!!!
    Another night of thankfulness.
  • xylophone
    xylophone Posts: 44,637 Forumite
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    Open a TSB plus account. Deposit £1500. Go paperless. Cycle in/out £500 a month. 3% interest.

    Open a Nationwide Flexdirect account. 5% interest for a year.

    Deposit £2500 - cycle in/out £1000 a month - you could use the TSB account for this exercise, or any non-Nationwide account.

    Open Flexclusive monthly saver - deposit up to £500 a month. 5% interest.
  • xylophone
    xylophone Posts: 44,637 Forumite
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    http://www.skipton.co.uk/savings/isas/lifetime-isa

    may be worth a look, depending on your circumstances.
  • jimjames
    jimjames Posts: 17,681 Forumite
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    i am only getting 0.5% on my cash ISA!!!

    So why not use an account that pays 10x more?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • theredrose
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    Many banks pay a higher interest on their non-ISA savings accounts vs their ISA accounts. Even if you don't want the messing around with different current accounts, cycling money through them etc., you can still get a better rate in a normal savings account, perhaps a fixed rate one for a year or two, and do much better than you would in an ISA (if your interest is below the Personal Savings Allowance).
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