7k savings-sitting in current a/c- wot do do?

plzhelpmesave!

Hi - Dh currently has about £7k that is in his normal halifax current account. What is the best way of us using this - this is our only savings for emergencies etc, Have no other debts now, other than mortgage (5.39% fixed for 10 years) We were hoping to start making overpayments on mortgage - still waiting to sort out how from BS.

Is it best to put this £7k in an ISA for each of us? Would want it to be easy access - as it is the only savings we have!
any thoughts please? thanks!

CLAPTON

if you're both tax payers then an instant acess ISA each would be fine

nrsql

I would probably put it in a cash ISA - maybe about 6k.
Where is your current account? Do you have internet access to it? Do they have an e-saver type account available? If so put the other 1k and whatever else in the e-saver, leave a little bit in the current account and check daily - you should be abloe to transfer instantly.

Well done on the mortgage (at the moment) - you will get more interest from the ISA so no point in paying it off from money that you could put in the ISA.
Look at Egg and Icesave ISAs and e-saver for instance. They look like you can transfer easily on-line and the e-saver would probably give better interest than your banks so is got for money you don't need to get at for a few days but should be there for a few months.

plzhelpmesave!

thanks guys!

that's wot i love about this site! u can sit and stew and think about something for ages - post a question and get it sorted in half an hour!

Mikeyorks

You don't say which current account it is .. but anything above £2500 is getting the princely interest of 0.10% ..... which is 50 times less than they offer up to £2500. (on the High Interest current accounts)

So whilst you're considering the ISAs .... I'd open (assuming you have online access?) their variable Websaver and drop the excess in. At worst it's overnight to open the new account. Their interest rate (4.36%) is a bit pathetic now - but it's 40 times more than you will be getting in the current account? And you can transfer back to the current account instantaneously and 24/7.