Need help maximising savings

NurseMoneySaver1122

Hi all

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UPDATE: Based on advice on here, and shopping around (not eligible for new customer rates with current top-paying providers as existing customer), thoughts please on the following plan:

• £87,400 (Trading212, Leeds BS & Moneybox ISA's)

Transfer into Kent Reliance ISA @ 4.27%

• £20,000 (Chase easy access full balance + £9,700 from First Direct)

Open Plum ISA @ 4.32% (Caveat: 1.78% included bonus only payable at the end of the year!)

• £37,600 remaining balance to go into Premium Bonds

Or should I leave some money in the existing ISA's, as I know at least some of them (Moneybox for example) say you cannot reopen again with them?

Would anyone do anything different (without locking money away for any significant period of time? Experiences with Kent & Plum would be helpful too!!!

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Need savings advice on behalf on other half (not living together so no sharing of accounts etc). Savings are in various accounts, not achieving best interest rates, with a couple accounts rates recently dropped further.

Any transfer/account switch plans would be greatly appreciated!

Relevant info:

• Higher rate tax payer, currently paying tax on savings interest,
• £20,000 yet to be moved to cash ISA for this tax year (obviously 1st thing for him to do!).
• Saving for a mortgage, so no long term locking away ideally.

Savings:

• Trading 212 cash ISA - 3.60% - £20,900
• Leeds BS Online Access ISA - 3.60% - £20,900
• Chase easy access account - 2.25% - £10,300
• First Direct Bonus Savings - 3.35% - £47,300
• Moneybox open access cash ISA - 3.25% - £45,600 (temporarily drops to 1% any month you withdraw)
• -
• ** Tandem savings account - 3.40% - £8,100 (
• ** First Direct Reg Saver - 7% - 1,500

**The bottom 2 accounts are for 5 year old daughter, (for tax purposes & more, would benefit being moved to child's account/ISA!). Currently move £300 from Tandem every month into First Direct Reg Saver.

Thanks in advance

winkowinko

I'd look to transfer the 3 ISA's (£87k) into a new one paying >4%, then add £10k from the Chase saver, plus £10k from First Direct saver into the new ISA. So £107k in a new ISA paying more than 4%

Then find somewhere better for the remaining £37k in the First Direct saver.

Open a child ISA and move Tandem savings into it.

Newbie_John

All ISAs and any money you can this tax year transfer to best ISA available:

https://www.moneysavingexpert.com/savings/best-cash-isa/

up to you if it's 1 year fix, 2 years.. depending on when the house purchase is planned for.

Regarding child account, JISA is a good option, but that's locked till the child ois 18, so if that's OK then why not.

Regarding the non-ISA money - Premium Bonds which are tax free - will offer you better return - currently best savings accounts offer 4.5% and after 40% tax that's 2.7%, so here you go - you're likely get more.

poolboy

Get the 200 GBP tax free Barclays switch offer. It took me 3 mins max.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81992650#Comment_81992650

That and https://moneyfactscompare.co.uk/isa/

Nurse2047

has he got a LISA?

NurseMoneySaver1122

https://forums.moneysavingexpert.com/discussion/comment/81992650#Comment_81992650

Appears to have ended on 30/04

NurseMoneySaver1122

No, he is not eligible due to age.

I do. Although stopped putting money into it, due to the limit on value house purchase. If I anticipated the government never reviewing that price limit since it's introduction in 2017, I never would have done it.

Should'a, could'a, would'a, I know. But, for those of us living near London, that £450K limit is, well, need I say more. So we are set to lose not inly the interest on our money, but a proportion of our own money too as I'll have to withdraw the money to purchase something over £450K

NurseMoneySaver1122

I don't really know much about premium bonds. How will I "likely get more" with premium bonds?

In my very limited experience, and with very little funds admittedly, I have had a child premium bond for the last 40 years that won nothing. And my daughter has approx. £300 in premium bonds that have never won.

So presumably we are talking big figures have to go in, but still not guaranteed anything right?

Albermarle

Although he is saving for a house deposit, contributing to a pension is very tax beneficial for a 40% taxpayer.

Newbie_John

https://forums.moneysavingexpert.com/discussion/comment/81993232#Comment_81993232

With low amounts chances are low, with £50k it averages to about 3.3% with average luck. So over £100 a month on average.

But it's easy access money (no risk, no long fix) and also tax free, and as they are higher tax payer who run out of ISA allowance - then it works very well.

Currently after tax they get below 3% of interests, with Premium Bonds they're likely to get more.