Top Cash ISAs Discussion Area

NikkyWikky

Anyone knows what better my current ISA @ 2% or Nationwide ISA Regular saver @ 2.5 both using the full allowance (Current ISA - 5,940 till July and then top it up to 15k on 1st July or Nationwide ISA Regular Saver @1250 each month)

Herbalus

NikkyWikky wrote: »

Anyone knows what better my current ISA @ 2% or Nationwide ISA Regular saver @ 2.5 both using the full allowance (Current ISA - 5,940 till July and then top it up to 15k on 1st July or Nationwide ISA Regular Saver @1250 each month)

Completely depends what's happening to the other part of the money if not invested if you go for the regular saver. In other words, if you have £15000 now at 0% and want to invest it, then the 2% ISA will get you roughly £270 for year 1, worked out at £5940 at 2% for 2 months and £15000 at 2% for 10 months. If you put this into the regular saver, £1250 each month at 2.5%, you'd get ~£150.

But if you have the £15000 earning money elsewhere and move £1250 to the ISA each month, you'd get extra to go on top of this £150. So it depends.

Archi_Bald

Herbalus wrote: »

But if you have the £15000 earning money elsewhere and move £1250 to the ISA each month, you'd get extra to go on top of this £150. So it depends.

I worked out some possible figures a while ago: http://forums.moneysavingexpert.com/showpost.php?p=65165962&postcount=8.

Though I haven't actually done a drip-feed scenario.

newuser78

In FAQ: http://www.moneysavingexpert.com/savings/best-cash-isa

Is it even worth saving in an ISA as rates are so low?
Yes if you want a tax-free lump sum for the future.

But if you're thinking 'I want high rates AND a tax-free savings pot', there is an answer. You could put cash into a higher-paying account - see current accounts for 4% deals on up to £5,000 or top savings to get 3% on £20,000 - then a week before the end of the tax-year (6 April), move the cash into an ISA.

You get the high rate for a year, and keep it safe from the taxman going forward.

Does this mean, set up a standing order for a top savings account, e.g. First Direct (6%) http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#firstdirect then in March 2015, transfer the entire amount into ISA?? Did I read this correctly?

I need to make my money work really hard this year so anything to help - investment is on my "to do" list also but want to put max into cash-only first.

Archi_Bald

newuser78 wrote: »

Does this mean, set up a standing order for a top savings account, e.g. First Direct (6%) http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#firstdirect then in March 2015, transfer the entire amount into ISA?? Did I read this correctly?

The 6% FD locks your money away for 12 months, so you cannot transfer it to an ISA in March 2015. However, unless you are maxing your £15K allowance, it probably doesn't really matter whether you put the money into an ISA in March 2015 or in May 2015.

There are instant access alternatives you might want to consider - Club Lloyds and TSB Plus spring to mind. All paying more than you can get in an ISA as a BR, and may be even higher rate tax payer.

newuser78

Archi_Bald wrote: »

The 6% FD locks your money away for 12 months, so you cannot transfer it to an ISA in March 2015. However, unless you are maxing your £15K allowance, it probably doesn't really matter whether you put the money into an ISA in March 2015 or in May 2015.

There are instant access alternatives you might want to consider - Club Lloyds and TSB Plus spring to mind. All paying more than you can get in an ISA as a BR, and may be even higher rate tax payer.

Very good point. Both branches are not far from my current workplace so will go in and have a chat sometime this week.

Quite depressing that the interest rates for ISA is so low! _pale_

Archi_Bald

You don't need to go into Branches for chats - all the info is online, and you can apply online.

It is probably not a good idea to go into a Branch and ask for a current account to put your savings in. They might tell you that this is not what the accounts are for and make you feel guilty.

Do it online, nobody will quizz you, and it is perfectly in line with the T&Cs. Also saves precious time in your life - - nothing more unproductive than opening a current account person to person since they would read out lengthy T&Cs to you, they have to. You can read those T&Cs in your own time at about 20 times the speed.

newuser78

Archi_Bald wrote: »

You don't need to go into Branches for chats - all the info is online, and you can apply online.

It is probably not a good idea to go into a Branch and ask for a current account to put your savings in. They might tell you that this is not what the accounts are for and make you feel guilty.

Do it online, nobody will quizz you, and it is perfectly in line with the T&Cs. Also saves precious time in your life - - nothing more unproductive than opening a current account person to person since they would read out lengthy T&Cs to you, they have to. You can read those T&Cs in your own time at about 20 times the speed.

That's true! It was more curiosity on what the customer service is like at branches.

YorkshireBoy

newuser78 wrote: »

That's true! It was more curiosity on what the customer service is like at branches.

Dire, in general!

I remember a few years ago walking into the then LloydsTSB and asking to open their 8% 2-year regular saver. The assistant looked a bit puzzled and asked which one was that. My reply?..."the one on the big poster in your window, at the side of the door you came through this morning!"

And again at LloydsTSB just last year. I'd called in to pay £1K in cash into my Lloyds Vantage account. The teller suggested I might like to have a chat with someone as a current account wasn't the best place for that kind of money. I pointed out that my account was paying 4%. There then ensued a discussion with her saying if I had Vantage I must be on 3%. She'd no idea about the 4% Vantage 12 month deal.

As Archi says, all the info you need is online. The provider websites for the detail and T&Cs, and MSE et al for the 'workarounds' where said T&Cs may appear too hard to meet at first glance.

The_Only_Homer_Simpson_UK

Hi All need a bit of advice please ,wife and myself have joint current account with First direct ( around £4--5k ave) ,
plus each have a reg saver @6% matures in june ( max £3600)
plus each have about 75k in F/D Isa (2%)
so dilemma we are facing is this year what to do with savings and Isas.
Concerned obviously as protection only up to £85k each and don't want to put all eggs in one basket .
Want to max the 2014/15 isa which is at 2% againat F/D and max the 6% reg saver again as both seem to be market leading but concerned will obviously break the protection limit .
do not want to lock money away on fixed more than a year as may want to access it at some point .......
I know the next best isa is Santander at 1.6%, which wife has 2 of the 123 accounts and pays her wages into and trying to max that at 3% where possible, I am higher rate tax payer ....what would your advice be to get best ISa returns whilst maximising savings else where..... hope you can help
thanks ...TOHSUK