£5k savings. ISA or put into building society

Yoshii

Hi 
My daughter has £5k savings in building society. Would like to get more interest. Better to put all into fixed rate ISA or a bank/building society paying 4.5% interest (variable) as not many have fixed rate?
Thank you
Yoshii

eskbanker

There are too many variables to give a simple one-size-fits-all answer to that, but she should consider when she'll need access to the money before deciding on where to put it in the mean time.  If a fixed rate is appropriate then whether an ISA is better than a taxable account will depend on respective interest rates and her overall tax situation.

And then there are other factors to consider, such as whether a Lifetime ISA might be appropriate if she's going to start on the housing ladder at some point....

Beddie

Yoshii said:

Hi 
My daughter has £5k savings in building society. Would like to get more interest. Better to put all into fixed rate ISA or a bank/building society paying 4.5% interest (variable) as not many have fixed rate?
Thank you
Yoshii

Go to Moneyfacts, look up easy access or fixed, both ISA and non-ISA, then make a choice. There is no simple answer, you need to choose yourself. 

https://moneyfactscompare.co.uk/savings-accounts/

Albermarle

Yoshii said:

Hi 
My daughter has £5k savings in building society. Would like to get more interest. Better to put all into fixed rate ISA or a bank/building society paying 4.5% interest (variable) as not many have fixed rate?
Thank you
Yoshii

Many banks and building societies offer Cash ISA savings accounts and non ISA savings accounts.
Also most offer fixed term and easy access ISA's and non ISA's
So not sure where you got your info from.
Have a read of this.
Best savings accounts: 5.2% easy access or 6.05% fixed rates (moneysavingexpert.com)

refluxer

Yoshii said:

Hi 
My daughter has £5k savings in building society. Would like to get more interest. Better to put all into fixed rate ISA or a bank/building society paying 4.5% interest (variable) as not many have fixed rate?
Thank you
Yoshii

How old is your daughter ? Bear in mind that she can earn up to £18,570 from combined income and savings interest before paying tax so if she is young and/or not earning close to that figure, then she won't necessarily need an ISA and would normally get a better interest rate in the equivalent non-ISA account.

Yoshii

Daughter is 22 and just works part time so no risk of paying tax on savings. Thank you for all your info including the person with sarcastic remark about looking for info myself. This is all part of process and ppl like me do trust what ppl on these forums say. Sometimes we want reassurance from those who know a bit more than ourselves.

Bigwheels1111

If she fixed the 5k she would get more interest.
Could the bank of mum and dad help her out if she needed some of the money before fixed rate ends ?.

Angelica123

Yoshii said:

Daughter is 22 and just works part time so no risk of paying tax on savings. Thank you for all your info including the person with sarcastic remark about looking for info myself. This is all part of process and ppl like me do trust what ppl on these forums say. Sometimes we want reassurance from those who know a bit more than ourselves.

I wonder if actually the most useful thing would be to encourage your daughter on come here herself. Empowering her to become financially savvy herself is the best thing you could do for her

There are better options for her than 4.5%. But what is right for her depends on her long and short term goals. Does she need immediate access to emergency funds? Is she saving for a house? 

Albermarle

I wonder if actually the most useful thing would be to encourage your daughter on come here herself. Empowering her to become financially savvy herself is the best thing you could do for her

Yes, reading the forum/ existing threads, would be great way to learn for the OP and his daughter.