Soldato
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.
Best savings account?
- Thread starter Merlin5
- Start date
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
Virgin have emailed me, Virgin and nationwide merger is now going ahead
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Underboss
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 :
Regular Saver Account | 7% Interest Savings - first direct
The first direct Regular Saver Account is designed for longer-term savers and allows you to save up to a maximum of £3,600 per year. Find out more 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
You're assuming money outside the regular saver earns nothing but why would you do that?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 :
Regular Saver Account | 7% Interest Savings - first direct
The first direct Regular Saver Account is designed for longer-term savers and allows you to save up to a maximum of £3,600 per year. Find out more here.www.firstdirect.com
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 can have both savers. Lump sump in easy access and filling the regular saver each month, either from income or savings.
Underboss
Pay the 300 each month into the 7% saver, keep remaining in chip at 5.1% each month. Result = more money.
Underboss
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
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Soldato
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 :
Regular Saver Account | 7% Interest Savings - first direct
The first direct Regular Saver Account is designed for longer-term savers and allows you to save up to a maximum of £3,600 per year. Find out more 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
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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Underboss
thanks guys 
Soldato
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
Yeah and if you did find another ISA you wanted to use you'd probably do a transfer anyway.
Underboss
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Associate
It used to be 8%, now as you see 6.5%
Soldato
Shame, mine is locked at 8% at least until it matures in November. Guess that was when I took it out last year.
Associate
Yep and despite them being variable accounts (I think) good they have kept it 8%
Soldato
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.
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.
Underboss
ive now got the First direct one
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With the Nationwide £100 payout pushing me over the tax threshold, I’ve diverted funds into premium bonds. Think I’m going to work on filling those up for a bit.