Am I getting the best deal? (with Skipton)

Mord

Im a bit naive when it comes to savings, Currently I have about four thousand pounds in what was a "Skipton Younge Sovrign Accout" which was setup with some cash for me to use when I hit 18.

So in the past ive just been adding and adding until Ive reached this 4grand in saving, but its still in the same account setup for when I was a kid and im now 21. Could I be benifitting from a diffrent account, and what about these ISA's I keep hearing about

Any help would be greatly appreciated.

Thanks,
Mord.

grumbler

There is no information on such an account on their website
If it is 'Leap account for young savers', it pays 4.65% - not a good rate. A lot of instant access saving accounts around offer 5%. The best instant access account pays 5.35%. For £4K you will get extra £32 gross (before taxes) p.a. If you are a taxpayer, you definitely need cash ISA that pays about the same interest rate tax-free. There are also regular saving accounts that pay 7-8%.
The best way now is to read articles in 'SAVINGS' section and then ask more specific questions.

Speculator

I think it pays 4.65%.

Click here for current closed account rates..

http://www.skipton.co.uk/investments/rates/pdf/current_closed.pdf

Mord

Thanks, ill (try to) read that section and ask some more informed question later.

Mord

Ok ive had a quick read and from what I can see I should put 3000 into a mini cash ISA, for simple sake I may setup one with HSBC (who I also bank with) and just transfer the money to them, 3000 this year, 1000 next.

Does that sound about right?

link:
http://www.hsbc.co.uk/1/2/personal/savings-investments/isa/cash-mini

Also if I put in 3000 pounds and then put in say 100 pounds more, will I still get the tax free on the 3000 but not the 100, or will I loose the tax free on the whole lot?

Speculator

HSBC only pay 4.60% on £3000.

Click here for better rates.

http://www.moneyfacts.co.uk/savings/charts/savings_mini_cash_isa.htm

grumbler

Mord wrote:

...HSBC (who I also bank with) and just transfer the money to them, 3000 this year, 1000 next.
Does that sound about right?

You can find up to 0.6% higher rate for no-hassle ISA (£18 more p.a. for £3000). You decide.

Also if I put in 3000 pounds and then put in say 100 pounds more, will I still get the tax free on the 3000 but not the 100, or will I loose the tax free on the whole lot?

You cannot put more than £3K during one tax year. If you still do this you do not lose anything for initial £3K. Extra money will be rejected or moved to some other account.

Mord

grumbler wrote:

You can find up to 0.6% higher rate for no-hassle ISA (£18 more p.a. for £3000). You decide.
You cannot put more than £3K during one tax year. If you still do this you do not lose anything for initial £3K. Extra money will be rejected or moved to some other account.

Hmm ok, but what do you mean by "no-hassle ISA"

grumbler

Mord wrote:

Hmm ok, but what do you mean by "no-hassle ISA"

I mean instant-access ISA without introductory bonuses, restrictions, transfer penalties...
There ara also regular saving ISAs.
There is a special 'ISAs,...' subboard here!

Some threads abot not 'no-hassle' ISAs:
First Direct to launch 6.25% mini cash ISA
05/06 tax year - cash ISA - 5.50%+