advice needed re saving please

gpjuicer

i will get £2500 next week from sale of car which I want to save until next May 2009 then use to pay off a loan (interest 6.1%)-but cant pay it off until then as still need to pay monthly. I was thinking of putting it into Barclays ISA. I have £610 this year in an NCBS ISA 5.76% interest which is my holiday fund that I will need to withdraw in august this year-I put £150 per month into this. Will I have to stop putting money into NCBS if I open this Barclays one? Is this the best course of action or has anyone got other suggestions? Thankyou!!

KiKi

You can put the £2500 into the Barclays ISA for 2008-9, but you cannot then add to the NCBS ISA in that same year.

What you can do, though, is add the £150 a month into the Barclays one - just don't exceed £3600 for the year. You can withdraw the money you need in August for the holiday (along with the NCBS money) with no penalty from Barclays.

(I did calculate what the benefit would be of opening a 6.25% A&L ISA and adding the 2500 and transferring the 610, but you wouldn't be any better off.)

Hope that helps.
KiKi

gpjuicer

Thanks for that good advice! I really appreciate it