ISA or fixed term bond?

redandwhitestripes

Sorry if this has been discussed before but with isa rates so low, both cash and fixed rate, I am wondering if it is worth keeping mine.

I have just over 30k in a Santander cash isa at 0.6%

It is there for a couple of reasons.
Firstly to help me qualify for being a Santander Select customer , although I don't really see much benefit for me being one.

Also , to enable me to move some money around to a better isa rate if I find one.

I have a Charter Savings instant access account at 1.1 , which is pretty decent for this day and age.

I can also open a 120 day notice at 1.26, or a year fixed at 1.51 with Charter savings.

I don't want to go down stocks or shares yet.
Also I haven't used this years isa allowance so can get most of this back under the isa banner if I need to.

Would anyone consider transferring out of the Isa into a better paying account?

I am currently havent worked this tax year either.

ColdIron

You have a £1,000 personal savings allowance (amongst others) so the ISA wrapper isn't doing you much good unless you're going to substantially increase it in the coming years. I'd find the best paying account(s) if it were me

Mee

I had a significant amount in my 123 Santander ISA at 0.10% after the fixed rate expired. However, I couldn't justify or afford to loose any interest especially with the PSA so moved some of it to fixed rate bonds (1/2 years); regular savers; and ISA regular saver, and to top high interest paying current accounts some of which feed regular savers. I also top up my Premium Bonds total now and again, but have kept some fixed and easy access previous tax-year ISAs with another provider because the rates are good.

I'm fairly risk averse so haven't gone down the investment route.

Good luck

summetj

If you're wanting to retain a cash ISA and maintain the ISA wrapper, Virgin Money has released a 5 year fixed cash ISA at 2.15%. Transfers in are allowed.

ManAtHome

redandwhitestripes wrote: »

Firstly to help me qualify for being a Santander Select customer , although I don't really see much benefit for me being one

Only thing I've done is to upgrade to a gold card - more countries where you can get no-fee cash withdrawals at Santander ATMs and a higher daily limit of £750.

Since upgrading, I've dropped well below the £75k and they haven't drummed me out of the club yet... (card runs for another couple of years).