Moving £10k from a low-performing ISA...

TristramShandy

I have £10k in a cash ISA that is going down to 0.20% interest.


The hope for these savings is to go towards a flat deposit in the distant future when we have enough together.


We have two help-to-buy ISAs into which we are paying the maximum each month, so we can't pay into this ISA and can't open another.

Otherwise we are saving ~£600 per month into an online savings account (0.75%).

Should we move the whole ISA amount into the online saver and close that ISA, or is it a good thing to keep for a reason I'm missing?


I've looked into regular savers, but they don't seem to allow a lump sum at the beginning.


Or should we be looking at something like a fix-term and try to put everything from the ISA and the online saver into that for say 12 months?

Thanks for any suggestions!

Rheumatoid

Why don't you move the ISA into a better paying ISA?

Albermarle

Nowadays if you are a basic rate taxpayer , you can earn £1000 pa in interest without paying any tax . So for most people a cash ISA is redundant and you can just stick with normal savings accounts , which normally pay a better rate of interest than ISA's.
Having said that your online saving rate of 0.75% is also poor . 1.5% for easy access to 2% for two/three year fixes are easily achievable . Try MARCUS or FORD MONEY , or if you prefer a household name - Sainsburys bank
https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Tom99

For goodness sake don't try Sainsburys bank they are dreadful.

Vet

I would suggest moving into a Marcus account - unless you earn over £1000 interest per year via other accounts (basic rate tax payer) or £500 (higher rate tax)

xxdeebeexx

I second Marcus.
Very easy to set up, pay into and withdraw from.
It might be worth ditching the 0.75% savings account too in favor of Marcus.


d x

TristramShandy

Thanks for all of the responses guys!


Marcus does look interesting, but I couldn't in good conscience put money in an account attached to Goldman Sachs.


I do not earn that much interest, not by a long shot!

edgex

TristramShandy wrote: »

Thanks for all of the responses guys!

Marcus does look interesting, but I couldn't in good conscience put money in an account attached to Goldman Sachs.

I do not earn that much interest, not by a long shot!

Why not?
Are who you are currently with massively better in some way?

TristramShandy

edgex wrote: »

Why not?
Are who you are currently with massively better in some way?

Probably not! I don't want to derail this useful thread, so let's just say that we're all allowed our own ethical quirks. I don't think you could find anyone whose moral decisions were fully consistent according to a coherent overarching framework and I'm sure my GS issues are pretty irrational when in the context of other things that I do/consume. Nevertheless, for me personally I would feel shame banking with an organisation that (again, to me) represents some of the worst aspects of our global financial system.


Thanks for the question though!

JGB1955

You can easily transfer to a one year fixed ISA at 1.55% (Aldermore or Paragon) or 1.85% in a fixed rate savings account.

TristramShandy

JGB1955 wrote: »

You can easily transfer to a one year fixed ISA at 1.55% (Aldermore or Paragon) or 1.85% in a fixed rate savings account.

Thanks for the reply. Won't my help-to-buy ISA prevent me from paying into any other ISA? Or are you permitted to do a one-off transfer from one ISA to another without that penalty?