Best savings account?

Soldato
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That's assuming you leave the rest in a 0% account.

I pay 3 of my regular savers from my monthly salary, the forth from my savings. Essentially I "upgrade" £150pm from 5.2% to 6.17%

It's basically never mathematically sound to move money from a higher interest account to a lower one on the basis that it earns more, as it won't without some kind of extenuating circumstance.
 
Underboss
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Assuming interest is calculated daily, your regular saver having a higher % of headline interest is still the best place to put it as it comes in.

When it matures, you get the cash back and the money would have earnt more interest than drip-feeding it into a normal Cash ISA at the same rate.

Only exception to this rule I can think of is if you are a super high earner who has to pay tax on the income outside of an ISA. Most of us won't hit tax liabilities from a single regular saver though even higher earners get £500 per year tax free allowance for this.


im not in the high band, i earn way way less than 40K


ok i will try and explain

Regular saving account at 7% @£300 a month is £136.50 a year in interest (or 11.38 a month)
see here :


My chip ISA , currently pending is £13.xx by the time around 7 June comes around, lets say its £20
£20 x 12 = £240
 
Soldato
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im not in the high band, i earn way way less than 40K


ok i will try and explain

Regular saving account at 7% @£300 a month is £136.50 a year in interest (or 11.38 a month)
see here :


My chip ISA , currently pending is £13.xx by the time around 7 June comes around, lets say its £20
£20 x 12 = £240
You're assuming money outside the regular saver earns nothing but why would you do that?

You can have both savers. Lump sump in easy access and filling the regular saver each month, either from income or savings.
 
Soldato
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im not in the high band, i earn way way less than 40K


ok i will try and explain

Regular saving account at 7% @£300 a month is £136.50 a year in interest (or 11.38 a month)
see here :


My chip ISA , currently pending is £13.xx by the time around 7 June comes around, lets say its £20
£20 x 12 = £240

You're falling into the classic trap here, money goes into the regular saver at intervals, over a period of time. You aren't commiting all of the funds up-front, in fact your last payment is only in there for a month.

Month 1: £300 is earning 7%
Month 2: £600 is earning 7%
Month 3: £900 is earning 7%

If you put that same £300 each month into the Cash ISA instead it will be like this:

Month 1: £300 is earning 5.1%
Month 2: £600 is earning 5.1%
Month 3: £900 is earning 5.1%

You can take the cash out and move it into the cash ISA, but £ for £, you will wind up with less interest accrued.
 
Soldato
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ah right, so what your saying is, instead of topping up my cash ISA each month, put it in a regular saver as you will get more from that monthly deposit

This!

First thing I do each month is put £200 into my regular saver with Nationwide at 8% because it will beat my Cash ISA and be competitive against stock market investments (with no downside risk).
 
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Soldato
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With t212 being flexible over moved some cash over that i need soon.
Such a great thing to have to be able to add and remove cash without losing the allowance

Will be ditching premium bonds for it

As far as I'm aware, it's not as a simple as being able to just take and add money as you like without losing your allowance. The flexibility is only with that same bank/platform.

If you put in 1k into any flexable ISA, your allowance will drop by 1k, (19K allowance)
if you take the money out and put it into another different bank's ISA it will drop by a futher 1k. (18k allowance)
if you take the money out and put it in back into t212 it will remain at 19k.

If you take 1k out and only put in £500 back in by the end of the tax year, you would have used 1k of the allowance, moot point really as you will have a new 20k allowance when the next year starts again.
so you can't put in 1k into t212, then take £500 pounds out and then try putting in £19500 into another banks ISA or trading platform's stocks and shares ISA, you would have to transfer that £500 pounds.
 
Caporegime
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As far as I'm aware, it's not as a simple as being able to just take and add money as you like without losing your allowance. The flexibility is only with that same bank/platform.

If you put in 1k into any flexable ISA, your allowance will drop by 1k, (19K allowance)
if you take the money out and put it into another different bank's ISA it will drop by a futher 1k. (18k allowance)
if you take the money out and put it in back into t212 it will remain at 19k.

If you take 1k out and only put in £500 back in by the end of the tax year, you would have used 1k of the allowance, moot point really as you will have a new 20k allowance when the next year starts again.
so you can't put in 1k into t212, then take £500 pounds out and then try putting in £19500 into another banks ISA or trading platform's stocks and shares ISA, you would have to transfer that £500 pounds.

I'll probably just be using t212 anyway. But yeah it would be complicated across providers.

I've never had a cash isa before. And this is literally for a month or so.. Or however long for my big purchase.
When u take it out I'll revert back to my S&S isa

If I don't put it on an isa I'll get stung for tax and worse. The paperwork that comes with it
 
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Soldato
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I think they do it because it's got a finite lifetime so they give you an issue number, and you get that rate locked in.

It's still worth doing it at 6.5% but yeah not as good :)

If I could be bothered I'd open up current AC's with all of the major banks and just use the best regular savers to get good rates and keep under taxable allowance.
 
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