Virgin cash isa or double take e saver

Ojb

It appears they both offer similar rates around 1.5%
So which would I choose?
I just want a instant access account to put about 50k
Thanks

kinger101

The maximum you can put into a ISA is £20K per tax year, so that's £40K if you do £20K by 5th April and £20K after.

When will you need the money? The ISA has a slightly lower rate, so the only advantages to using it are

(a) getting it wrapped for a time when interest rates may become higher, or you can transfer to a better product.

(b) if the interest received would not be covered by the £1,000 personal savings allowance (e.g. other interest income, higher rate tax payer reduction to £500).

Reed_Richards

Since the government introduced the Personal Savings Allowance the usefulness of ISAs has become restricted to those people who have a lot of money in savings/investments or people who hope to grow their savings and investments to that point or higher rate taxpayers with moderate savings. Of course if you do want to use an ISA you will have to invest £20k before 6th April, another £20k after 6th April and find another home for the remaining £10k.

With £50k you will earn £750 interest in the first year if invested at 1.5%. That is worth putting in an ISA if you are higher rate tax payer. Otherwise it depends on your future plans. if you want instant access because you will spend most of it one day then go for whatever (FSCS protected) account you can find with the best interest rate.

Ojb

I'm a lower rate tax payer. I will need the money in stages to pay off my mortgage. Which is 2.69% but can only pay 10% a year.

kinger101

Ojb wrote: »

I'm a lower rate tax payer. I will need the money in stages to pay off my mortgage. Which is 2.69% but can only pay 10% a year.

If that's the case, then you might consider whether it might be better to put the money into a fixed-term account.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Choose a combination of instant, one, two year fixes etc based on when you need the money.

Ojb

Thanks I will do this.... Can't see any point in doing an ISA over a normal savings account

Reed_Richards

Ojb wrote: »

Can't see any point in doing an ISA over a normal savings account

Neither can I, given your current circumstances.

Ojb

Thank you. Looking at aldemore .. decent rates for 2+ years fixed plus monthly interest..