40k Monthly Interest ?

Heytheremrblue

Hi all I have an ISA maturing in a few weeks and wondering what to do.

I'm not using my full personal allowance so I don't really need another ISA I don't think ! ?

My plan was to drop it into NS&I Guaranteed Income Bonds which have a rate a little better than my current ISA.

Thoughts much appreciated.

boingy

Remember once your money is in an ISA it stays in an ISA in subsequent years so that might be a reason to use your 20K ISA allowance this year.

I am a fan of the NS&I bonds but make sure you are comfortable with the fixed term. You cannot withdraw anything or close the account until the term is up. 

EthicsGradient

You can get 4.35%, with monthly income, from RCI (Renault), or Atom, 0.56% better interest than NS&I on fixed terms of 2 years  - see Best 2 Year Fixed Rate Bonds | Up to 4.45% | August 2025
That would be £224 a year more, if you're happy using a less-known name (they still have the FSCS guarantee).

friolento

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

Heytheremrblue

friolento said:

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

Yes 40k in an ISA and no I don't pay tax.

clairec666

friolento said:

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

I thought they meant that they were getting £40k a month in interest

If the NS&I bond is only a little better than the ISA, then weigh up the benefit of that little bit of extra interest vs the benefit of keeping the money in the ISA wrapper for subsequent years. I know which I'd go with.

Heytheremrblue

clairec666 said:

friolento said:

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

I thought they meant that they were getting £40k a month in interest

If the NS&I bond is only a little better than the ISA, then weigh up the benefit of that little bit of extra interest vs the benefit of keeping the money in the ISA wrapper for subsequent years. I know which I'd go with.

£40k A month  I would be posting from my Learjet ! Yes good advice I'll sit down before I make a decision and weigh up the pro's and con's.

El_Torro

clairec666 said:

friolento said:

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

I thought they meant that they were getting £40k a month in interest

If the NS&I bond is only a little better than the ISA, then weigh up the benefit of that little bit of extra interest vs the benefit of keeping the money in the ISA wrapper for subsequent years. I know which I'd go with.

As well as the tax differences it's also important to compare like for like. If we're comparing an easy access Cash ISA from one specific bank with a 1 year (or possibly more than 1 year) fixed rate account from NS&I we're not really comparing like for like. 

Heytheremrblue

El_Torro said:

clairec666 said:

friolento said:

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

I thought they meant that they were getting £40k a month in interest

If the NS&I bond is only a little better than the ISA, then weigh up the benefit of that little bit of extra interest vs the benefit of keeping the money in the ISA wrapper for subsequent years. I know which I'd go with.

As well as the tax differences it's also important to compare like for like. If we're comparing an easy access Cash ISA from one specific bank with a 1 year (or possibly more than 1 year) fixed rate account from NS&I we're not really comparing like for like. 

Yes I would be going for 1 year fixed but remember I'm not paying tax.

El_Torro

Heytheremrblue said:

El_Torro said:

clairec666 said:

friolento said:

Your thread title confuses me. Do you mean you have £40k (in an ISA) and are looking to put it into an account that pays monthly interest (that you can withdraw monthly)?

Assuming you are a taxpayer, you would probably be well advised to keep your money in an ISA wrapper

I thought they meant that they were getting £40k a month in interest

If the NS&I bond is only a little better than the ISA, then weigh up the benefit of that little bit of extra interest vs the benefit of keeping the money in the ISA wrapper for subsequent years. I know which I'd go with.

As well as the tax differences it's also important to compare like for like. If we're comparing an easy access Cash ISA from one specific bank with a 1 year (or possibly more than 1 year) fixed rate account from NS&I we're not really comparing like for like. 

Yes I would be going for 1 year fixed but remember I'm not paying tax.

Have you looked at other Cash ISAs? Your current provider might not give a competitive rate. As EthicsGradient mentioned earlier there are 1 year fixed rate Cash ISAs that have a higher interest rate than NS&I. 

According to this article you can get 4.31%: https://www.moneysavingexpert.com/savings/best-cash-isa/#bestfixedrate

Heytheremrblue

I’ve decided to stick it into Premium Bonds for a year mainly because I enjoy the chance every month.

Still have 8 years before my state pension if I want to build up my isa.