ISA v normal Savings + fixed v variable
Hi, My brother who has learning difficulties (I think he would've been diagnosed with a form of autism back in the 70s if it had been well known then) has always committed the cardinal sin of sticking to the bank (HSBC) that receives his wages. He has an ISA with them along with a flexible saver. The latter has nothing in it and just over £6000 for the ISA. He also has £15000 in his current account which has slowly built up over the years as he's just left it there and never moved it to his ISA.
It would seem the best ISA pays around 5.9% while a savings is about 7%. Am I right to assume that it would work roughly the same between them when you take into that you have to pay tax on the normal savings accounts?
I'm also wondering if it's prudent to find a variable one although the interest rates seem to have stabilised now.
Can anyone recommend which type and rate he should go for? He won't need access to the funds and can save a bit each month. I'm thinking that if there really isn't a lot of difference then he might as well go for one that is flexible, just in case.
I'm finding it a bit of a minefield so if anyone can recommend an option then I'd be extremely grateful.
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