Ditching my ISA

Mr-White · 28 Nov 2013 at 15:25

It looks like HSBC in January are finally slashing my ISA rate by 38.2%, so it's time to ditch the banks for savings.

In one of the other savings related threads someone mentioned a website where you can invest money and specify a returns percentage by the level of risk, I'd be interested to take another look at that if anyone has the link ?

MW

leaskovski · 28 Nov 2013 at 16:25

What!? by how much!? What rate were you on in the first place???? 40%!?!?

McGray · 28 Nov 2013 at 16:27

Zopa is the P2P lending site.

http://www.zopa.com/

Beerbaron · 28 Nov 2013 at 16:28

Im emptying my ISA at Xmas to pay off some of my mortgage. It makes no sense keeping it as interesting rates are shocking at the moment.

tom_e · 28 Nov 2013 at 16:29

leaskovski said:
What!? by how much!? What rate were you on in the first place???? 40%!?!?

Think about it, slashing 2 by 50% gives you 1

a1ex2001 · 28 Nov 2013 at 16:30

Beerbaron said:
Im emptying my ISA at Xmas to pay off some of my mortgage. It makes no sense keeping it as interesting rates are shocking at the moment.

tricky though as the money you have in the ISA is prtected from Tax so should interest rates rise they will again become more attractive but you can't load them up anything like as quickly as you empty them.

leaskovski · 28 Nov 2013 at 16:31

lol... err. yes. I will get my coat. Its effectively Friday to me, my mind is elsewhere!

Beerbaron · 28 Nov 2013 at 16:31

tom_e said:
Think about it, slashing 2 by 50% gives you 1

You are only allowed 1 ISA

Energizer Bunny · 28 Nov 2013 at 16:31

Don't do this. Almost all banks give you a good introductory rate then slash it after 1-2 years as a tax on the lazy. Just move the ISA to another bank who will give you a better rate. ISA transfers these days are incredibly straightforward and the tax saving you get on the income is a huge boost. Don't forget that once you take funds out of an ISA you can neve put them back in so think hard before ditching it!

sbi5ar · 28 Nov 2013 at 16:32

Beerbaron said:
You are only allowed 1 ISA

What has that got to do with the price of peas?

tom_e · 28 Nov 2013 at 16:32

Beerbaron said:
You are only allowed 1 ISA

I don't know what that's got to do with my post but I'm well aware you're only allowed 1 ISA.

Beerbaron · 28 Nov 2013 at 16:33

a1ex2001 said:
tricky though as the money you have in the ISA is prtected from Tax so should interest rates rise they will again become more attractive but you can't load them up anything like as quickly as you empty them.

My ISA is less than 1% and my mortgage is 3.2%. Im effectively tripling my gains every month.

sbi5ar · 28 Nov 2013 at 16:34

Energizer Bunny said:
Don't do this. Almost all banks give you a good introductory rate then slash it after 1-2 years as a tax on the lazy. Just move the ISA to another bank who will give you a better rate. ISA transfers these days are incredibly straightforward and the tax saving you get on the income is a huge boost. Don't forget that once you take funds out of an ISA you can neve put them back in so think hard before ditching it!

False... You can take money out and put it back in, but you're only allowed to deposit X amount per year. I see where you are coming from, but I have taken money out and put it back in later (I always come in under the top amount you're allowed to deposit)

Beerbaron · 28 Nov 2013 at 16:35

tom_e said:
I don't know what that's got to do with my post but I'm well aware you're only allowed 1 ISA.

I read your post wrong

leaskovski · 28 Nov 2013 at 16:35

Beerbaron said:
My ISA is less than 1% and my mortgage is 3.2%. Im effectively tripling my gains every month.

True, but is it not worth keeping some savings in case of bad times?

I would cash all my ISA out to pay part of my mortgage off, but a) the mrs is expecting, b) there are limits to how much you can pay off (mortgage wise) a month, c) having a backup stash is good if work goes bad.

Beerbaron · 28 Nov 2013 at 16:37

My wife will match what I pay off on our mortgage and its up for renewal in Jan.

Theophany · 28 Nov 2013 at 16:46

Finance threads in GD = General Derpscussion.

Mr-White · 28 Nov 2013 at 17:01

McGray said:
Zopa is the P2P lending site.

http://www.zopa.com/

Have you used the site before ?

MW

McGray · 28 Nov 2013 at 17:17

I haven't no, did look into it but never took the plunge.

Some good info in this thread - http://forums.overclockers.co.uk/showthread.php?t=18489883

-Ad- · 28 Nov 2013 at 17:22

Stocks and Shares ISA.

You can put over £11k in per year.

Certainly more risk, but if you're in for the long haul then you will get a hell of a lot more reward.