What savings accounts for 18k ISA?

boomish · 20 September 2018 at 10:40AM

I've moved 5k out of my ISA and made a Nationwide Flex Direct and a TSB Classic Plus and got them transferring 1500 each month for 5% interest.
However I've still got an old Santander ISA with 18k thats not earning anything, its an old ISA Saver account. Should I keep opening accounts with the rest? or is worth keeping some in an ISA? I've read so much now my head is spinning..
Any opinions or help much appreciated..I'm rubbish with this..

Paul_DNAP · 20 September 2018 at 11:08AM

Look at the top rate guides on this website, to get a really decent rate you're possibly going to have to put some restriction on access to it.

Have a wander over the ISA sub-forum, they'll have plenty of help for you
https://forums.moneysavingexpert.com/forumdisplay.php?f=18

But, if you're not troubling the PSA threshold on tax free interest, then yes you could use it to feed the higher rate bank accounts and regular savers.

Dobbibill · 20 September 2018 at 11:11AM

Both Nationwide & TSB have regular savers - 5% on £250 & 2% on £250 per month. (TSB can only be opened in branch at the moment though following the IT problems).

Who do you hold your main account with? Do they have a RS account?
Would you be saving from your income too?

Maybe consider drip feeding it out of the ISA into the RS while you consider your options

boomish · 21 September 2018 at 10:24AM

Thanks so much for the replies, I forgot to mention my concern is removing it from the ISA but if it's not making much interest whats the point?

I bank with Barclays and have used as I said 5 in TSB & Nationwide already, it's wether to open more accounts like this, I have read about joint names and opening accounts in my wife name, but we have anther 16k in her ISA, so I was thinking about doing the same.

Trouble is Im fearful it could all get very complicated with so many accounts, but then thats why eh.

I'll have a look at regular savers, I opened one with Santander where our ISA is but that wants £200 per month in and you can set up standing order out, so I can trickle in a little to get £60 over the year..but nothing like the Nationwide & TSB paying each other £1500 per month.

My Income isa little hit & miss at the moment as I've lost a few jobs this year but I've just started 2 new part time roles so until I get settled I'm unsure of income..

Again I appreciate the help , I ended up giving up and leaving the money in the ISA but I with over 30k stashed away we should try and make the most of our savings. So any advice is very welcome..
Thank you.

badger09 · 21 September 2018 at 11:07AM

The annual ISA allowance at the moment is £20k. You say you have £18k and your wife has £16k in ISAs earning next to nothing. If you really wanted to, you could contribute those amounts to a new ISA in the future in just one tax year;)

If your savings are for a longer term, have you thought about investing? Either in your pensions, or in S&S ISAs? It doesn't have to be all or nothing. You can save what you're comfortable with in high interest current accounts and regular savers, and invest some.

enthusiasticsaver · 22 September 2018 at 8:32AM

Have you looked at investing in a stocks and shares isa? I moved away from cash isas quite a few years back and transferred to a global multi asset stocks and shares isa (medium risk) for long term savings. Short term and immediate cash are kept in Santander 123 at 1.5% and tesco current accounts (3%) and as they are old they don't have the restrictions the new ones have. The rest is in Tesco Internet saver at 1.34%. Our stocks and shares isa is performing around 7.5% at the moment. Not guaranteed though so if you are very cautious that may not be for you.

Regular savers are a good way to go too.

EachPenny · 22 September 2018 at 11:12AM

boomish wrote: »

Thanks so much for the replies, I forgot to mention my concern is removing it from the ISA but if it's not making much interest whats the point?

badger09's point about the £20k annual limit is a good one, but if you are still concerned, then consider opening a Flexclusive ISA with Nationwide (your FlexDirect account makes you eligible) and then get them to arrange an ISA transfer from Santander (they are usually very quick).

You can then make withdrawals from the Nationwide ISA and because it is a flexible one, you would be able to return the money to the ISA within the current tax year without impacting on your 2018/19 ISA allowance.

I've just done something very similar - I can easily beat Nationwide's 1.1% rate on the Flexclusive ISA, so I've drawn the money in that account down and placed it in various RS and current accounts. In April I will move it back into the ISA for a few days in order to maintain the ISA capacity just in case I need to use it at some point in the future.

Doing it that way is a win-win, and Nationwide will do the hard work for you.

What savings accounts for 18k ISA?

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