Instant Access Isa Or Regular Savings

[queenofmean]

I want to put what I make from my Avon somewhere but I don't know which is the better option. Which is best and what would you choose?

[boxtops]

Interest rates aren't very clever at the moment, but if you haven't got an ISA, go for that - you pay tax on regular savings, but up to £5600 in an ISA this year is tax free.

[queenofmean]

I don't have an Isa - I used to have one but never actually used it. Thank you Boxy I will look into an ISA

[gingejbee]

...however, most Regular Savings accounts have pretty good rates for the first year at least. There is no "best" answer here...it depends on the amounts involved and the terms of the account you choose.

[gingejbee]

Regular savings info:

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

[boxtops]

That's true, ginge - I had a very good rate on my regular saver, which has now ceased. ISA's best from the tax perspective, IMO.

[queenofmean]

They aren't massive amounts but I would like to have access to the money and just be able to transfer it from a to b or vice versa, rather than have it sitting in my bank account where I'd be more likely to use it for silly stuff and save it from getting muddled up with other things going in and out of my account.

[boxtops]

I know what you mean. We've got a main bank account with one bank for major monthly stuff, then I have a couple of instant access ISAs and savings accounts with Nationwide, I can move money between them. You really need to look at rates currently being offered by all the High Street branches for the most convenient and suitable one for you.

[DaisyNonna]

Isa would be a good choice Queenie. If ever interest rates go up it is simple to transfer.

[queenofmean]

I was considering doing it through RBS as they are one of the banks I bank with and its the account all my Avon money goes through. Plus I can actually go in branch as the other bank I use is too far away and I refuse to use Bank Of Scotland :(

[boxtops]

You can do, keeps all the money in the same place!

[queenofmean]

Hiya Daisy, I'm thinking that maybe an Isa would be my best choice

[queenofmean]

:) life is so much easier that way Boxy

[boxtops]

You can get Instant Access ISAs which might pay lower rates than tying up money for longer terms, but it's what it says "instant access" if you need it.

[boxtops]

There you go - interest rate's not much, but at least you won't be taxed on the annual interest they pay you. http://personal.rbs.co.uk/personal/savings/isa-overview.html

[tonyav]

Pretty decent interest rates here, Queenie.
http://www.santander.co.uk/csgs/Satellite?canal=CABBEYCOM&cid=1237892266671&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

[queenofmean]

Thank you Boxy and Tony :)

[Jennykenny]

Or you can buy Premium Bonds. Each one costs £100.00, but you have a chance of winning up to. £1,000,000! And you never lose the money invested. It's lovely when the nice long white envelope, with the Glasgow return address, comes through the letterbox- it is usually only £25.00, but still a nice feeling.

[SarahQW]

I would always suggest opening an ISA too, and it's tax free so a win win. I have a cash and stocks and shares ISA with Fidelity (https://www.fidelity.co.uk/investor/isa.page) and it's brillient, I can save up to £12,200 a year!

[SarahQW]

I would always suggest opening an ISA too, and it's tax free so a win win. I have a cash and stocks and shares ISA with Fidelity https://www.fidelity.co.uk/investor/isa.page and it's brillient, I can save up to £12,200 a year!