Savings or ISA

morrow56

Any advice appreciated

I have 18k in the Santander Easy Access Saver (5.2% paid monthly)

Also have a very low amount in Santander Cash Isa (3.2% paid yearly)

Would you advise transferring the 18k to the Cash Isa before 5th April or leave in the higher rate Saver

Thanks for any thoughts

A

RobfromCornwall

1. I would leave the 18k in the higher rate account.  5.2% is the best easy access account rate at the moment.

2. I would consider moving the ISA money.  3.2% is rubbish. The best easy access ISA is currently 5.09%.  You might also want to consider whether you need this an a ISA, or whether it would be better elsewhere.  

I checked the rates above via moneyfactscompare.co.uk 

ColdIron

morrow56 said:

I have 18k in the Santander Easy Access Saver (5.2% paid monthly)

Also have a very low amount in Santander Cash Isa (3.2% paid yearly)

That would depend upon whether you pay tax on your savings interest, or expect to pay to pay it in the future

If you don't then just go for the best rate, and I'd move that ISA to a one paying a better rate anyway

surreysaver

You could move the £18k to a flexible ISA that doesn't have withdrawal restrictions (Principality paying 5.05% at the moment), this is similar to an easy access account as you can pay money back in that you've taken out within the same tax year.

That way it will protect other interest from outside the ISA from the taxman, as your interest from the £18k is very close to tip you over the personal allowance of £1k (assuming you're a basic rate tax payer)

Dazed_and_C0nfused

surreysaver said:

You could move the £18k to a flexible ISA that doesn't have withdrawal restrictions (Principality paying 5.05% at the moment), this is similar to an easy access account as you can pay money back in that you've taken out within the same tax year.

That way it will protect other interest from outside the ISA from the taxman, as your interest from the £18k is very close to tip you over the personal allowance of £1k (assuming you're a basic rate tax payer)

That doesn't have any savings starter rate band available.

MichaelAP

If you do not want Principality then look at ZOPA Cash ISA Access Anytime which pays 5.08AER/4.96Gross monthly.
It allows full and partial transfers so if you transferred either the whole or part of your current ISA you would be earning an additional 1.58% based on your annual 3.2AER.
Also, interest being paid monthly means you get access to the interest each and every month.