Best ISA 'feeder' account?

Mikomotor

Hi,

Having done a little reading, I'm going to invest monthly into my Stocks and Shares ISA, rather than as a lump sum.

So what I need to find now is the highest interest bearing savings account that I can easily transfer money from on a monthly basis via DDM into my ISA.

Am I right in thinking that the only accounts that will do this are clearing accounts - i.e., accounts like Kaupthing won't allow DDM's to be set up?

Cheers,
Mike.

stevedb11

Hi Mike,
I have a Nationwide flexaccount linked to a Nationwide E saver(5.3% gross), you can do instant transfers between these accounts.
So I have arranged a DD for £50 a month from my Flexaccount into Hargreaves and Landsdowne Vantage ISA (unit trusts).
I know the Esaver is'nt the highest interest but I find the instant transfer facility very useful.
Hope this gives you food for thought. Steve;)

wheredoesallthetimego

If you have the funds and just want the monthly drip feed then I think you can add the cash to a h-l isa and they will handle the monthly investment from there.
You will get interest on the cash but it will be taxed. I suspect that the interest will also be held in the isa so you bnefit in that way although you probably lose out on the rate - I seem to recall the rate isn't as bad as you might think though.