Top Cash ISAs Discussion Area

anon_ymous

For the longer "fixes" it almost seems a bit like it's not worth it. I mean it depends o how much risk you're willing to take

ie: at Zopa, you can make around 5.1% AER/year

With tax that's either

5.1%/4.08%/3.06%/year
0%/20%/40% tax

The Virgin offer for 40% tax payers isn't too bad I guess, but if I'm locking in for five years, tbh I'd rather put it in Zopa

Currently have around £1000 in there (tax free. Wooh)

Archi_Bald

waqasahmed wrote: »

Currently have around £1000 in there (tax free. Wooh)

How do you make your Zopa income tax free for yourself? Are you a non-tax payer?

If all you have is £1,000, you can get a risk free 5% AER from TSB, paid out gross is you qualify for R85 conditions. That would hold true up to £4,000.

anon_ymous

Archi_Bald wrote: »

How do you make your Zopa income tax free for yourself? Are you a non-tax payer?

If all you have is £1,000, you can get a risk free 5% AER from TSB, paid out gross is you qualify for R85 conditions. That would hold true up to £4,000.

Nah I don't pay tax

I started my placement in July last year meaning that I technically don't earn enough to pay tax

And tbh I am going to do that as well. When I first put in the £1000 Club Lloyds and TSB plus hadnt came out then

Going to get both a club Lloyds and a TSB plus account,

So 5K at Lloyds, 2K at Lloyds, 3K at Tesco and the rest sitting in my Santander 123 account

All the interest going in to the Santander account, with that interest going in to an ISA

I did the maths. You get a better AER this way than putting all the interest money straight in to an ISA

ceredigion

I did the maths. You get a better AER this way than putting all the interest money straight in to an ISA



I'm sure you did and you`ll do even better if you run a couple of TSB accounts and an additional Tesco`s into the mix.
You also say your not a tax payer , get the R85 form filled in and unless you`ve got cash savings totalling plus 50K , forget the ISA all together.

jimjames

waqasahmed wrote: »

So 5K at Lloyds, 2K at Lloyds, 3K at Tesco and the rest sitting in my Santander 123 account

All the interest going in to the Santander account, with that interest going in to an ISA

I did the maths. You get a better AER this way than putting all the interest money straight in to an ISA

You can have 2 tsb accounts and another nationwide all at 5% so that's another £4500.

Why would you even bother with a cash ISA when you're a non taxpayer and can get 5% outside? The MSE guide is currently incorrect and misleading people when it says

For a cash NISA paying 2% AER to be beaten, a basic-rate taxpayer would need a savings account offering 2.5%, while anyone paying higher-rate tax would need 3.33% - and those accounts currently aren't out there.

anon_ymous

jimjames wrote: »

You can have 2 tsb accounts and another nationwide all at 5% so that's another £4500.

Why would you even bother with a cash ISA when you're a non taxpayer and can get 5% outside? The mse guide is currently incorrect and misleading people when it says

For a cash NISA paying 2% AER to be beaten, a basic-rate taxpayer would need a savings account offering 2.5%, while anyone paying higher-rate tax would need 3.33% - and those accounts currently aren't out there.

Because I had no idea you can have more than 1 TSB plus accounts

Kinda forgot about the Nationwide one

Healthking

Hi - I have a Santander 123 current account (not up to the £20K limit for interest purposes). I am a basic rate tax payer. I also have a Santander ISA (two year's worth of savings) that is now paying just 1%. Would I be better off just keeping my money in the 123 current account or moving some of it into another NISA somewhere and transferring my current ISA?


Thanks


Healthking

Archi_Bald

How much is in your ISA? How much are you planning to add to it this year? It might make sense to move the balance into current accounts. TSB Plus pay 5% AER on 2 x £2,000. Club Lloyds pay 4% on balances between £3,000 and £5,000. Tesco pay 3% on 2 x £3,000. That is £15,000 in total at double or more than what you get in your ISA. But whether it makes sense depends all on the amounts you are talking about.

Obviously there is the 123 as well but it has the £2 monthly charge.

Healthking

Thanks Archi Bald. I have £12K in previous ISA and was thinking of adding another £6K for this year. I don't really want to have to keep tabs on several accounts so would really be looking to consolidate if this makes sense?

Archi_Bald

It's easy enough to keep everything in one ISA - find somewhere that allows transfers in and that lets you deposit new money. The interest rate will be worse than in current accounts and your money will struggle to keep up with inflation but this might be acceptable to you, in return for having a single account, and all your savings in an ISA.