NISA vs Current
Discussion
Going round in circles on this one so I thought I'd ask the PH wisemen. My ISA rate is about to drop to nearly nothing, so it's time for the annual shop around. Once again there's a pitiful offering to house my savings - 1.5% at best without locking it away - and interest rates aren't likely to go down so I'm not keen to trap it away. I'm weighing up keeping the (N)ISA going, versus bunging the lot into a Santander 1-2-3 account, where even the £2 monthly fee and loss of tax-free gains is outweighed by the additional interest I would earn.
It seems like the most profitable place to stick my cash short of investments, but do you agree? I can't find enough information to make me confident about trackers or other medium-term options; I'm saving for property (not as investment per se); another reason not to go for longer term fixed rates. No debt to pay off other than a student loan; I want to be able to pay in regularly.
What happens if I do leave the ISA, is it simply a case of losing potential tax-free interest (which seems academic if the earnings are lower), or are there any more shortcomings I've overlooked, any longer term tax implications? I'm also concerned about the safety of having savings and cash in one pot, accessible via one card, one account number, although getting a 1-2-3 credit card may help mitigate that a little.
Has anyone done similar? How did it work out for you?
TIA
It seems like the most profitable place to stick my cash short of investments, but do you agree? I can't find enough information to make me confident about trackers or other medium-term options; I'm saving for property (not as investment per se); another reason not to go for longer term fixed rates. No debt to pay off other than a student loan; I want to be able to pay in regularly.
What happens if I do leave the ISA, is it simply a case of losing potential tax-free interest (which seems academic if the earnings are lower), or are there any more shortcomings I've overlooked, any longer term tax implications? I'm also concerned about the safety of having savings and cash in one pot, accessible via one card, one account number, although getting a 1-2-3 credit card may help mitigate that a little.
Has anyone done similar? How did it work out for you?
TIA
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