30k - 1st march deadline

alfmurph

I am 64 and retire in 12 month's . Never had great wages but have added to my isa savings over the years . Will have a DB pension and lump sum when I retire . I helped my son pay for his wedding 6 month's ago leaving myself with 35k savings . I keep 5k in easy access account for emergencies . I have always dealt with big banks and building society but their 1 year fixed isa is miserable so the time has come to jump . I know atom bank offer 1.9% but you pay interest . aldermore bank and a few others pay around 1.4% but I know nothing of these banks . I was going to stay big with the post office for peace of mind but now there interest rate has went down . Then there is national savings as well . I think one year fixed is best as interest rates will probably go up and I can move again .
Any suggestions please .

polymaff

As regards NS&I, if you won't pay tax on your taxable savings income, you might do better to go for the 3-year product and accept the early-exit penalty !

bowlhead99

Why is there a 1 March deadline? What urgent event is happening in your life that means you need to lock £30k away by then?

Aldermore are a good 'proper' bank even if they are a less well-known brand. Part of their trying to grow their customer base from scratch to hundreds of millions of deposits has required them to get a good reputation for customer service and offer better rates than some of the bigger rivals. There is full FSCS protection.

You mention that in a year you will retire and then you will have a lump sum coming to you. Are you actually going to need this money a year from now after the one year fix is up, or are you just going to keep rolling it over into more annual deposits at savings interest rates? If you are not going to need the money until the medium-to-long term, you could use an S&S investment ISA rather than a cash ISA, at least for part of it.

With a large lump sum coming in a year's time it makes sense to keep it in an ISA rather than lose the ISA protection as it could take a while to 'wrap up' your money again if you take it out of the ISA environment. But having said that, if your pension lumpsum is not very big it will not take too long to move your money back into an ISA (only a few years at the £20k per year limit) if ISA rates are competitive and you have some tax to avoid because you are making more income than will fit into your interest allowances.

alfmurph

1st march my 2 year fixed isa at 1.25% with Halifax matures .