🗳️ ELECTION 2024: THE MSE LEADERS' DEBATE Got a burning question you want us to ask the party leaders ahead of the general election? Submit your suggestions via this form or post them on our dedicated Forum board where you can see and upvote other users' questions. Please note that the Forum's rules on avoiding general political discussion still apply across all boards.

Best place for savings

Options
Hi,

I opened up a Help to Buy ISA with Virgin Money last tax year and currently pay £200 per month into this.

I have savings (a regular savings account) with Halifax worth approx. £12,000 but the interest rate is rubbish (0.25%) and I've had a letter this morning from Halifax saying that the interest rate is being reduced to 0.05% with effect from July 2017.

I have a couple of questions - firstly, can I open up an ISA in this new tax year, despite having the Virgin Money Help to Buy ISA and the fact that I am contributing to this? I understand that my ISA allowance under the new ISA will be reduced by £200 x 12 = £2,400, so my allowance will be £17,600.

Is there much difference between ISAs and regular savings accounts these days? Where would be the best place for my money? Ideally I'm looking for an account where I can chip in the odd few bits of cash that I have left over at the end of the month that I haven't spent, and also an account where I can withdraw money at any time (ie. not a fixed term / rate ISA).

Thank you.

Comments

  • xylophone
    xylophone Posts: 44,648 Forumite
    Name Dropper First Anniversary First Post
    Options
    You may be interested in the LISA from Skipton in due course.

    http://www.skipton.co.uk/savings/isas/lifetime-isa

    Had you considered opening a Flexdirect current account with Nationwide and the associated Flexclusive monthly saver?

    And a TSB plus current account with TSB?

    http://forums.moneysavingexpert.com/showthread.php?p=72512372#post72512372
  • isasmurf
    isasmurf Posts: 1,999 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Options
    aliceg1989 wrote: »
    I have a couple of questions - firstly, can I open up an ISA in this new tax year, despite having the Virgin Money Help to Buy ISA and the fact that I am contributing to this? I understand that my ISA allowance under the new ISA will be reduced by £200 x 12 = £2,400, so my allowance will be £17,600.
    Not with Virgin. A HTB is a cash ISA, so you need to transfer it to a provider that allows a 'portfolio' cash ISA where you can spread your allowance over different cash ISA products. Nationwide do this, and Natwest allow it only for a HTB and instant access cash ISA. Generally, cash ISA rates are lower than non isa rates.
    aliceg1989 wrote: »
    Is there much difference between ISAs and regular savings accounts these days? Where would be the best place for my money? Ideally I'm looking for an account where I can chip in the odd few bits of cash that I have left over at the end of the month that I haven't spent, and also an account where I can withdraw money at any time (ie. not a fixed term / rate ISA).
    If your looking to chip in a few quid every month, consider a regular saver as these pay more than normal savings accounts. They only last for a year, and you'll need to check for those that allow instant access. Virgin's regular savers allow instant access and no commitment to fund every month @ 2.25%. If your quick you'll be able to open the current issue, which I'm expecting to be withdrawn in the next couple of weeks and also open the new issue, if there is one.

    Nationwide also offer an instant access regular saver, but to get the 5% you need to open a current account with them if you don't already have one.

    In terms of instant access, there is tesco @1.06%, but this contains a bonus so you need to remember to move it next year.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 8 Election 2024: The MSE Leaders' Debate
  • 343.9K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.2K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards