help! 10% regular saver or 6% ISA

krissy08

which is better? I need to start saving. I haven't got an ISA and it's all very confusing. i want to save £50/month

Techno

Once the isa year has gone you have lost the opportunity to save that money tax free but the 10% rate will work out at 8% net if you are a basic rate taxpayer. I save into these high rate regular savings then at the beginning of the tax year/end of regular saving year pay this as a lump sum into my isa and then start again

jules73_2

It depends if your going to be able to save more than £50 at some point.

The regular saver will pay you more over the year than the ISA will.

The general rule is to max out your years ISA allowance and then pay into a regular saver.

With the amount you are planning on saving, I would put it in the regular saver providing you do not touch the money for a year.

Milarky

The 10% regular saver (there is only one) is limited to £500 per month. If you had a £3600 lump sum to put into an ISA (and forget about) for a year that's slightly in your favour - but not much.

But @ 10% the rate advantage of the regular saver [8% net v. 6% for basic rate taxpayer] will always be there [this year]

For a simpler life, go for the ISA.

For a bit of excitement (juggling payments) go for a regular saver at this rate - remembering that you can drop the payments after a few months to achieve a better rate.

10% or 6%..? [Daddy or chips...?]