Savings account vs ISA?

elsmandino

Thanks guys.

As is mentioned, I don't really want to overcomplicate things at this stage so what I really want is two savings accounts that do not penalise me for removing money from them.

What I really want is to have a current account with enough in it to constantly cover all my direct debits and receive my monthly pay.

I will then move my monthly pay into one of my savings account.

I will pay everything on credit card and pay the balance from my savings account.

sammy_zammy

friolento said:

elsmandino said:

 

Martin says to diarise for a better rate on the Chip account.  What does this mean, in practice?  Does this mean that I reopen yet another savings account and move everything accross to that one?

yes. you constantly need to keep an eye on easy access interest rates as they can, and very likely will, reduce. Whether it will be worth moving your money depends on what the moves are, and what will be available in the market at the time.

Especially if using Chip, which is a base-rate tracker and so reduces interest rate the day the BOE announces any change with no warning.