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  • FIRST POST
    • LauraThornett
    • By LauraThornett 15th Sep 18, 12:09 PM
    • 4Posts
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    LauraThornett
    What to do with my ISA?
    • #1
    • 15th Sep 18, 12:09 PM
    What to do with my ISA? 15th Sep 18 at 12:09 PM
    Hello,

    So I have a Cash ISA with Natwest that I opened years ago and the interest rate is appalling on it now. I want to move to a normal savings account as I don't really benefit from the ISA as I never save more that 2000 a year.I want a better return basically! What would the implications be if I moved my savings out of the ISA into another account and closed the ISA?

    Also, I opened a young savers account with Natwest 9 years ago. Its is held in trust for my son. I pay in to it monthly but again, the interest rates are poor! Are there implications for closing this down too as it is not my account?
Page 1
    • masonic
    • By masonic 15th Sep 18, 1:05 PM
    • 10,135 Posts
    • 7,427 Thanks
    masonic
    • #2
    • 15th Sep 18, 1:05 PM
    • #2
    • 15th Sep 18, 1:05 PM
    For the ISA, the only implication is that if you started saving more than 20k per tax year or have a very large amount of savings, it would take you longer to get it all sheltered from tax if circumstances changed. Generally when you have multiple tens of thousands of pounds in savings that you are going to keep for the long term, keeping it all in cash is not advisable. At the lower end of the income/savings scale, cash ISAs no longer make much sense. Up to 1000 of interest can be earned tax free outside of an ISA for basic rate taxpayers, more for very low earners.

    For the trust account, presuming it's his legally his money, and you are a trustee, then you have the right to move it if it would be in his interest to do so, but would need to ensure he remained the beneficial owner of the new account.
    Last edited by masonic; 15-09-2018 at 1:08 PM.
    • Albermarle
    • By Albermarle 15th Sep 18, 2:03 PM
    • 206 Posts
    • 100 Thanks
    Albermarle
    • #3
    • 15th Sep 18, 2:03 PM
    • #3
    • 15th Sep 18, 2:03 PM
    Unless you have very large cash savings earning interest ( say > 50K ) , there is no need normally to use the tax shelter of an ISA anymore.
    I was reading this morning that non ISA savings accounts typically offer interest rates of 0.3% higher than equivalent isa accounts .
    Apart from that Nat West/high street bank savings accounts typically pay poor interest for Isa's and non Isa's. You should go to the website 'MoneySupermarket.com ' and go to the savings section and you can search for the accounts giving the best interest rates. You will get better rates if you tie the money up for a period compared to easy access accounts.
    • jimjames
    • By jimjames 15th Sep 18, 5:53 PM
    • 12,821 Posts
    • 11,553 Thanks
    jimjames
    • #4
    • 15th Sep 18, 5:53 PM
    • #4
    • 15th Sep 18, 5:53 PM
    You haven't said how much is in the account but for amounts of up to around 10k you can get between 3% and 5% which is way more than any cash ISA by using current accounts and regular savers
    Remember the saying: if it looks too good to be true it almost certainly is.
    • xylophone
    • By xylophone 16th Sep 18, 11:31 AM
    • 27,357 Posts
    • 16,364 Thanks
    xylophone
    • #5
    • 16th Sep 18, 11:31 AM
    • #5
    • 16th Sep 18, 11:31 AM
    Was your son born between September 2002 and 2 Jan 2011?
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