Halifax 10% or ISA?

townfan63

Hi there,

I'm a bit of a novice with this sort of thing and was wondering if someone could help?

I am going to be putting £75 per month into some sort of savings account and I thought it would be an ISA but now I have seen the advert for the Halifax Regular Saver offering 10% I'm not so sure.
Is anyone able to advise where I would be better putting my money?

Many thanks

debbie42

If you are a basic rate tax payer, you'd pay 20% tax on the interest, so 10% would still net you 8%. So an ISA would need to be paying at least 8% to beat the Halifax (leaving aside long term considerations of sheltering the cash from tax etc.).

Jonbvn

The regular saver would give you a better return. However, with the ISA, it is a case of use it or lose it. Assuming you have no savings other than the £75pcm I would suggest you open a regular saver now, and when it reaches maturity (in a year) put the accumulated money into an ISA.

townfan63

Thank you both for your replies. They have helped clarify for me!

Cheers!

jules73_2

I would carry on with a regular saver the following year as well, providing it's paying more than an ISA.
Open next years regular saver with the money saved from the previous year.
Continue doing this until you have enough cash (£3600) to max out an ISA.
Then start on your regular saver again.