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frederico

Current Accounts And Cash Isa's

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So, cash ISA's pay zilch,current accounts pay more.

So to get a any sort of return I have to open 3 current accounts with 2 direct debits each and then pass money from one to another each month.

The banks really are bonkers.

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You can get ok-ish rates in a cash ISA if you lock the money in for a bit. I get 2.7% with Coventry BS. It's "fixed" for five years but you can take the money out any time with a penalty of just 120-day's interest.

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Do it (the current account thing). If nothing else there's a perverse sense of satisfaction from it, you'll often end up with other benefits (insurance/cinema tickets) as well and it doesn't take long to set up. Use the Regular savers too, and drip feed into those.

Also, use Tesco Internet Saver accounts to create your own direct debits, and sweep all the interest in there.

When you're doing this across 3 people, you can end up with quite a sum at the end of the year, and it's tax free if you don't earn much, or you can earn has £1k / £500 per year in interest income before tax depending on how much you earn from April.

Averaging about 4% net from over 100k by this method, completely risk free. Although there are people on this board who think it's a waste of time, I really don't see it. Didn't take very long to set and forget.

Edited by Frugal Git

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So, cash ISA's pay zilch,current accounts pay more.

So to get a any sort of return I have to open 3 current accounts with 2 direct debits each and then pass money from one to another each month.

The banks really are bonkers.

The whole lot of it is bonkers......it is a full time job, finding the best places, swapping, changing, risking and diarising back to 0.01%.....not just for banks but also for utilities, insurances, telecommunications etc,etc......when many are almost cartel like, loyalty does not pay....brand new customers only......those who stick are subsidising those who care enough and can be bothered enough to twist, spread and clear cookies.......all schools should be good schools. ;)

Edited by winkie

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Having savings spread over three accounts at the moment. All three have been in touch to reduce rates or up account fees this year. The FLS extension is no doubt a major factor here, but also I think the new tax free interest allowances are being used as an excuse to further slash rates. Grrr.

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Do it (the current account thing). If nothing else there's a perverse sense of satisfaction from it, you'll often end up with other benefits (insurance/cinema tickets) as well and it doesn't take long to set up. Use the Regular savers too, and drip feed into those.

Also, use Tesco Internet Saver accounts to create your own direct debits, and sweep all the interest in there.

When you're doing this across 3 people, you can end up with quite a sum at the end of the year, and it's tax free if you don't earn much, or you can earn has £1k / £500 per year in interest income before tax depending on how much you earn from April.

Averaging about 4% net from over 100k by this method, completely risk free. Although there are people on this board who think it's a waste of time, I really don't see it. Didn't take very long to set and forget.

Could you provide some more info on how you're doing this? I'm sitting on £140K that's basically doing nothing. Getting 4% on it would be fantastic, and I'm more than happy to invest some time in setting it up/maintaining it.

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I have a big chunk of cash in cash ISA, and now it's interest rate is 0.5% I actually earn nothing from it. So I am considering about moving all the money from ISA to Zopa risking losing all of the tax free allowance. Has anybody been keeping money in ISA and thinking of moving out from it? I am not really sure keeping the free tax allowance just in case is a good idea. Please inspire me if someone have thought about this. Thanks in advance!

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NS&I are sending out emails to bribe us to vote Tory.... you can invest a whole three grand.... returning thirty quid a year more than you can get elsewhere...... wow... :rolleyes:

Dear Mr Banner,
 
This is to let you know that our new Investment Guaranteed Growth Bonds are now on sale until 10 April 2018.

The Bonds are a lump sum investment that earns a fixed rate of interest over three years. They are designed to be held for the full 3-year term. Savers can get access to their money earlier, but there will be a penalty equal to 90 days’ interest on the amount cashed in.

The Bonds are only available online at nsandi
Key features
 
2.20% gross/AER, fixed for three years
On sale until 10 April 2018
Available online only
For savers aged 16 and over with a UK bank account
Invest from £100 up to £3,000 per person
Early access subject to a penalty
100% secure, backed by HM Treasury

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