Should I stick all money from building societies in a Marcus account?

Bravepants

bp5678 said:

Hi again everyone,
I've moved some of the money across from these building societies into my Marcus account (which I'll be moving over to Premium Bonds soon). I just had a quick question though:

Some of these accounts listed above are ISAs (eg the Santander ISA saver being one of many examples). Should I still move the money over to a Marcus/Premium Bond account for these as I believe I'll lose the tax benefits by moving the money out of these ISAs?

If you're going to end up earning greater than £1000 a year interest in Marcus then you are best keeping it in your cash ISA.

bp5678

Bravepants said:

bp5678 said:

Hi again everyone,
I've moved some of the money across from these building societies into my Marcus account (which I'll be moving over to Premium Bonds soon). I just had a quick question though:

Some of these accounts listed above are ISAs (eg the Santander ISA saver being one of many examples). Should I still move the money over to a Marcus/Premium Bond account for these as I believe I'll lose the tax benefits by moving the money out of these ISAs?

If you're going to end up earning greater than £1000 a year interest in Marcus then you are best keeping it in your cash ISA.

I have about £35k in my Marcus account so I think I'm some way off and the interest rate is about to drop further so I think I'm a long way off reaching £1k a year interest.... but would be useful if someone could confirm?

greatcrested

I would keep the ISA money in an ISA. But not necessarily your current one. Shop around for the current best rate and transfer (Do not withdraw the money yourself!) to that. Arguably you might get a better rate and stillpay no tax in a savings account, but once you move the money out of an ISA, you can never (normally) move it back.

Marcus rates are dropping, so shop around again eg Newcastle BS at present if you are quick.

But consider also fixed rate accounts. The rates are not much better, but they won't drop during the next year (or 2, 3, whatever period)

London7766551

Marcus is just going to keep going down in my opinion. They have met the limits of savings so don't want the cash really.

Growingold

greatcrested said:

Marcus rates are dropping, so shop around again eg Newcastle BS at present if you are quick.

  Gone!!

Eco_Miser

bp5678 said:

Some of these accounts listed above are ISAs (eg the Santander ISA saver being one of many examples). Should I still move the money over to a Marcus/Premium Bond account for these as I believe I'll lose the tax benefits by moving the money out of these ISAs?

Yes, you'll lose the tax benefits, but really what tax benefits? 

The first £1000 pa of interest not in an ISA is taxed at zero percent, and you are presumably going to spend it all when you buy your house.