Question re CHIP

pennyfarthing66

I may be missing something really obvious here, but as CHIP offers a variable ISA, is there any advantage in having their Instant Access Account at a lower percentage, when the ISA is flexible and allows withdrawals/deposits without impacting the ISA allowance?

Secondly, CHIP offers an Easy Access Saver at a higher percentage than the ISA, providing no more than 3 withdrawals are made in a 12 month period.

My question is, if a persons savings aren't huge and not likely to attract tax on the interest, wouldn't it make more sense to put funds you don't want to touch in the easy access saver and use the flexible ISA as a savings account you can withdraw from/add to when needed?

Thoughts would be welcome.

surreysaver

You put your money where it earns most 
 interest. I use a flexible ISA for day-to-day stuff, and keep money in higher earning more restrictive accounts, like regular savers, which even after tax pay more interest than the ISA

allegro120

If your income from savings doesn't attract tax you should go for the highest interest rate.

nottsphil

surreysaver said:

You put your money where it earns most 
 interest. I use a flexible ISA for day-to-day stuff, and keep money in higher earning more restrictive accounts, like regular savers, which even after tax pay more interest than the ISA

I do too. For my regular savers paying less than 6%, I tend to feed them at the end of the month if that means I can keep more in the Chip ISA.
As for the other advice already submitted, the OP might want to think about any possible receipt of inheritance, because if large/soon enough he might regret not having that ISA capacity in place.