Online ISA / Savings accounts...

Delvis

Delvis

Delvis

Caporegime
Joined
7 Nov 2004
Posts
30,197
Location
Buckinghamshire
Good day all :)

Just a quick question...I have a little extra cash coming my way, and I am hoping to put atleast half of it away if not a bit more.

Now then, I bank with Lloyds, don't ask me why, I just do, always have done since I was really young, and they reside down my road like five minutes away, so it's easy.

Question, I have a choice of either an 'Internet Saver' account, or opening up a 'Cash ISA'...far as I am aware, I can access both whenever I want as well, and transfer money back into my 'normal' account (Really, it is THE basic account pretty much...no credit cards or anything) if I end up needing more money etc.

Views? I really don't know exactly which are better...or if I just shouldn't bother, and leave the money in my normal account? It's all rather new to me to be perfectly honest.

Thanks people.
 
Yoink.

Whatever you do, don't just leave it in your normal account. ISAs are better simply because they're tax free, but if you want to access it regularly they are not so suitable.
 
Cheers matey, I'll have a read of that :)

Yeah, it isn't a huge amount of moeny by the way, but more than I normally would have 'laying around'...So I'd rather try and do something with it.

I don't like the idea of only being able to invest x amount though? That's weird...Doubtful I'll be doing that just yet...But I mean for the future.

I just get confused with all the interest rates and everything else.
 
Well, er, interest rates is a different topic.

If you want a short-medium-somewhatlong investment then ISA is the way forward. The upper limit thing is just for the tax-free portion of savings, and whilst it may sound weird it's the best way to go.
 
platypus said:
Well, er, interest rates is a different topic.

If you want a short-medium-somewhatlong investment then ISA is the way forward. The upper limit thing is just for the tax-free portion of savings, and whilst it may sound weird it's the best way to go.
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True...but surely an ISA has some form of interest? I'll have to have a look online at Lloyds and compare the two...see what the differences are, and what minimum payments are as well etc.

I could pop down the bank, see if anyone is available to speak to, but it just seems like they just want to do you over normally.
 
Just look at it this way.

Interest you'll earn will be paltry whichever way you go.

If you want a bit more long term, tax free savings, go ISA. ISAs should not be used as a regular cash account.

If you essentially want a cash account with a bit of interest, go savings account.
 
platypus said:
Just look at it this way.

Interest you'll earn will be paltry whichever way you go.

If you want a bit more long term, tax free savings, go ISA. ISAs should not be used as a regular cash account.

If you essentially want a cash account with a bit of interest, go savings account.
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Nice way of putting it ;)

My only issue with ISA's now is after reading part of your link :p Where it says you can only add in £3k a year...regardless...Until the next year obviously.

But with a savings account I presume you can put a bit more in if you need to.
 
You're limited to £3,600 in cash per tax year, yes.

The reason being this is tax free. So if you're investing more then £3,600; invest £3,600 in an ISA, then the overflow into a savings account.
 
platypus said:
You're limited to £3,600 in cash per tax year, yes.

The reason being this is tax free. So if you're investing more then £3,600; invest £3,600 in an ISA, then the overflow into a savings account.
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That's a fair point...Might just open an ISA when I get paid, put some in, then see how thing's go I guess.

As you stated, better than leaving it all in my standard accont.

Just have to be careful how much I put in now! :p As I don't have an income after this month...ugh.
 
I have a E-ISA with Natwest and can transfer money in and out instantly between other Natwest accounts online.

That said....its all online you have no access to it at the bank.
 
Delvis said:
I just get scared of thing's like that...As I've never heard of them :p
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Whats to be scared of? It's a financial product, not a girl.

Go to a bank and have a chat if you're that worried, other then that just spend 15 minutes reading about them and you'll know most of what you need to know. Then just do a bit of shopping around to find the best product.
 
Delvis said:
I just get scared of thing's like that...As I've never heard of them :p
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They're part of the Bank of Scotland. Obviously you are fully covered up to £50k by the Government.

It's a very good rate, and you can constantly add/withdraw till your heart's content. I tend to put 25% of my monthly wage away. The rest goes on rent, food, clothes, etc etc etc
 
TheDean said:
They're part of the Bank of Scotland. Obviously you are fully covered up to £50k by the Government.

It's a very good rate, and you can constantly add/withdraw till your heart's content. I tend to put 25% of my monthly wage away. The rest goes on rent, food, clothes, etc etc etc
Click to expand...

Yeah, bit better now I know who they are :)

I'll just have to have a read around I guess, however the online saver at Lloyds might be my best bet...as I'm already with them...
 
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