Not So Smart Saver

FunLovinCriminal

So....
I have ignored my savings for too long.  I have little free time, so i try to keep things simple.
Currently, we have £3k in an ISA earning 0.35%, and £200 in a BoS savings account earning 0.4%
I dont really want to go an open another account and have to juggle money about, however I have just seen a monthly saver with BoS paying 4.5% gross. Max payments of £150 per month. Am I better moving both accounts to this?

adindas

FunLovinCriminal said:

So....
I have ignored my savings for too long.  I have little free time, so i try to keep things simple.
Currently, we have £3k in an ISA earning 0.35%, and £200 in a BoS savings account earning 0.4%
I dont really want to go an open another account and have to juggle money about, however I have just seen a monthly saver with BoS paying 4.5% gross. Max payments of £150 per month. Am I better moving both accounts to this?

There is a winding way to get the best of both worlds high interest RSA / Saving account and contained it in ISA. It might not be worthy considering the next tax years is only a few months away and the amount of money involved is relatively small.

IMO If you do not pay tax on interest earned, and the amount of money that will need to be protected against the taxman is not that big (In your case £3.2k) , there is no point to put your money into ISA account. You could still have £20k allowance in the next tax year.

If this is all the money you are talking  about, imo you will definitely better off to drip-feed your money into BOS RSA paying 4.5%.

You could also open another RSA such as Club Lloyds RSA  paying 5%, Lloyd RSA paying 4.5%, Halifax RSA paying 4.5%.

The rest of your money to be put  into high interest easy access account of your choice waiting allocation to be deep-fed into RSA

https://moneyfacts.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Qyburn

You'd make a bigger difference moving it all into something that pays a better rate.  I think the best ISA at the moment is Marcus at 2.5%, but I don't think they accept transfers in. Paragon at 2.3% do.

I understand the point about spending time, but fiddling about with monthly savers takes more time and effort than moving the whole lot.

Band7

the best easy access ISA is currently the 3% Virgin Money one

CooperSF

Band7 said:

the best easy access ISA is currently the 3% Virgin Money one

Just set one up myself.

£16k into that
£4K into my Cash LISA

jimjames

FunLovinCriminal said:

So....
I have ignored my savings for too long.  I have little free time, so i try to keep things simple.
Currently, we have £3k in an ISA earning 0.35%, and £200 in a BoS savings account earning 0.4%
I dont really want to go an open another account and have to juggle money about, however I have just seen a monthly saver with BoS paying 4.5% gross. Max payments of £150 per month. Am I better moving both accounts to this?

I'm not sure how you intend to move both accounts to that when the maximum monthly payment is £150. That means you'd have to leave £3200 waiting to be moved into the new account which would seem to defeat the aim of getting a better rate. There are much better paying ISAs or non ISA accounts that you could open. In order to get best rates you need to bite the bullet and open a new account, otherwise you are limited to the (poor) accounts on offer.

Qyburn

Band7 said:

the best easy access ISA is currently the 3% Virgin Money one

Isn't that only available to existing Virgin current account holders?

Band7

Qyburn said:

Band7 said:

the best easy access ISA is currently the 3% Virgin Money one

Isn't that only available to existing Virgin current account holders?

Yes but you don't have to use that current account.

RobM99

Why an ISA? You're not earning £1000 a year in interest. 

Band7

RobM99 said:

Why an ISA? You're not earning £1000 a year in interest. 

Because they might be a higher rate tax payer? Or they might expect to become a higher rate tax payer?

RobM99

You won't earn £1000 in interest on £3,200 though. Otherwise we all would.