The Top Easy Access Savings Discussion Area

sheslookinhot

RosieRooBear said:

@Patr100, I’ve done exactly the same as you, am moving my money from Santander 5.2% to the  Zopa 5.08% ISA, although I’m tempted to move it back after April 5th to Santander to get an extra few weeks at the 5.2%.

What is the gain for you by that course of action?

Bridlington1

sheslookinhot said:

RosieRooBear said:

@Patr100, I’ve done exactly the same as you, am moving my money from Santander 5.2% to the  Zopa 5.08% ISA, although I’m tempted to move it back after April 5th to Santander to get an extra few weeks at the 5.2%.

What is the gain for you by that course of action?

It's a flexible ISA, if you make a deposit now you would preserve some of your 2023-24 ISA allowance in case you want to use it later, even if you withdraw the money again on or after 6th April.

RosieRooBear

@sheslookinhot, exactly as @Bridlington1 said, I wanted to protect my ISA allowance for this tax year. I’m a non-taxpayer so don’t actually need it but as the ISA is flexible, in case my circumstances change in the new financial year I have protected this years ISA allowance and will still have 2024-25 ISA allowance available.

RG2015

sheslookinhot said:

RosieRooBear said:

@Patr100, I’ve done exactly the same as you, am moving my money from Santander 5.2% to the  Zopa 5.08% ISA, although I’m tempted to move it back after April 5th to Santander to get an extra few weeks at the 5.2%.

What is the gain for you by that course of action?

Moving £40k back to Santander for 53 days would yield an extra £7.00 or thereabouts.

They did say it was just a temptation so it may have been tongue in cheek.

RosieRooBear

@RG2015, in my case it will be an extra £3.50ish (just this years allowance) but still think it will now be more than a temptation, it will be worth doing, every penny/pound is better in my pocket 😁

pecunianonolet

It may even be worthwhile to borrow, ideal scenario would be for one night only, to fill up an ISA.

Note:Must be a flexible ISA!

Example: You only have 10k in savings you can put in an ISA, you would in this circumstance give up the remaining 10k allowance for the current tax year. 

Now, you borrow 10k and put it in your ISA and the ISA provider takes a note of your balance of 20k on 5th April 23.59. You have maxed out your allowance. On 6th April, you withdraw the borrowed 10k and pay off your loan or if you had a money transfer offer on a credit card you pay off the card. (Keep interest for borrowed money to a minimum).

You now have a full year to save the remaining 10k and by 5th of April the following year can pay those 10k in your original ISA. Obviously, you would be now short of 20k if you could only save those 10k, which were missing from year 1 and you would need to borrow now 20k. You reach a point where you would need to borrow huge sums to keep the allowance game going.

If you can save now 20k you can repeat the above. If you would be able to save 30k, you can fill up the original ISA and the one from the following year without the need for any borrowing. 

Do your own research but for some it could be worthwhile to borrow for a very short period as you buy yourself some time to backfill your shortfall with future income. 

Flexible ISA's are very powerful if used in the right way.

EDIT: More here: https://monevator.com/annual-isa-allowance/

Please continue ISA conversations here

pfpf

i remember this was very much discussed either in this thread or on a thread of its own but can't seem to find reference now.
Santander Edge: 7% savings linked to a current account.
whats the process of restarting the 12 month clock? do i close the savings? do i downgrade the current account and the savings account is closed automatically?
can i then upgrade the same current account back to Edge and reopen a saver?
thank you.

csw5780

pfpf said:

i remember this was very much discussed either in this thread or on a thread of its own but can't seem to find reference now.
Santander Edge: 7% savings linked to a current account.
whats the process of restarting the 12 month clock? do i close the savings? do i downgrade the current account and the savings account is closed automatically?
can i then upgrade the same current account back to Edge and reopen a saver?
thank you.

https://forums.moneysavingexpert.com/discussion/6474787/santander-edge-saver-renewal

TheBanker

pfpf said:

i remember this was very much discussed either in this thread or on a thread of its own but can't seem to find reference now.
Santander Edge: 7% savings linked to a current account.
whats the process of restarting the 12 month clock? do i close the savings? do i downgrade the current account and the savings account is closed automatically?
can i then upgrade the same current account back to Edge and reopen a saver?
thank you.

Close the savings account - you can do this through their chatbot in the mobile app.
When it's closed, apply for a new one which you can also do through the app.
Whole process can take a few days because you need to wait until the old one's closed before you can apply for a new one.
Don't change or close the current account. 

Bridlington1

@soulsaver
Post Office Money Online Saver Issue 72 now 5.06% (£1 min, includes 3.51% fixed bonus for 1 year)