# Isa



## Matt. (Aug 26, 2007)

Looking at opening an ISA.

Halifax are offering an online version, 2.75% tax free/AER variable including 2.50% fixed bonus 12 months.

Is that a good deal?


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## Natalie (Jan 19, 2011)

Post Office one seems good if you won't be making withdrawals
http://www.moneysavingexpert.com/savings/best-cash-isa or Santander if you have £2.5k to open


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## Matt. (Aug 26, 2007)

Just thought it would be easier as I could transfer money as and when into the ISA form my Halifax Current Account.


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## Alzak (Aug 31, 2010)

is there any point to open ISA account if ISA if there is 2.75% AER where inflation is about 4% ...


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## Matt. (Aug 26, 2007)

So where would you save money then?


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## Natalie (Jan 19, 2011)

Matt. said:


> Just thought it would be easier as I could transfer money as and when into the ISA form my Halifax Current Account.


Can do this using faster payments with most or setting up a standing order each month  
http://www.moneysupermarket.com/savings/easy-access-accounts/ also has a list of top ISAs

or there are some good(ish) regular saver offers available but you would have to pay tax on these
http://www.moneysupermarket.com/savings/regular-savings-accounts/


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## Buck (Jan 16, 2008)

Alzak said:


> is there any point to open ISA account if ISA if there is 2.75% AER where inflation is about 4% ...


Put it this way: -

You keep your money in cash then £1 is worth 96p in 12 months time

You put it in an ISA @ 2.75% then £1 is worth 97.25p in 12 months time

Unless you have a lot of money to invest and lock away for at least 2-3 years then savings rates are very poor at the moment but this is about reducing impact of inflation and keeping as much value as possible.


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## Matt. (Aug 26, 2007)

I don't really want to set up a Standing Order.

I just want to transfer money as and when. Looking at most of the others, the Halifax seems on par. All but .25%


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## eddie bullit (Nov 23, 2007)

Got debt? Pay that off first before you save. Pay your mortgage off prior to saving any real amount. If you have a mortgage you'll be paying more in interest than you'll get from any savings.
Edd


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## Matt. (Aug 26, 2007)

No debt 

Savings are for a mortgage


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## kh904 (Dec 18, 2006)

Matt. said:


> No debt
> 
> Savings are for a mortgage


I'm in the same position, no debt and have quite a bit saved.

Sure saving rates are less than inflation (i believe it's a lot higher than 4%), but at least you are reducing that loss of purchasing power.

Many people (that included myself until recently) misunderstand what inflation is! Inflation is the increase of the money supply in an economy (steals value from money already in the system - a hidden tax) - higher prices are a consequence of inflation.
So every time the Government 'prints' more money (it merely keys it in computer) ie quantitative easing - that's inflation.

I'm personally seriously thinking of using a lot of my savings and buying physical gold & silver as they are a good hedge against inflation & the failier of fiat currency that's happening around the world!


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## Natalie (Jan 19, 2011)

Matt. said:


> No debt
> 
> Savings are for a mortgage


I know Nationwide do special deals for savers if they are FTB with a 5% deposit Linky

Might be worth asking Halifax if they have anything similar?


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## kh904 (Dec 18, 2006)

Natalie said:


> I know Nationwide do special deals for savers if they are FTB with a 5% deposit Linky
> 
> Might be worth asking Halifax if they have anything similar?


I'd personally would put down at least 10% deposit, & don't necessarily take all that a bank offers, only what you can realistically afford to pay back - taking account big unexpected costs that pop up now and then, if you lose your job, effect of interest rate rises etc


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## Matt. (Aug 26, 2007)

Natalie said:


> I know Nationwide do special deals for savers if they are FTB with a 5% deposit Linky
> 
> Might be worth asking Halifax if they have anything similar?


Isn't that just a savings account with 2.5% interest?


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## McClane (Dec 9, 2010)

http://www.moneysavingexpert.com/savings/best-cash-isa

Well worth having an ISA as the money accrues, and is tax protected once put in. The only other tax protected way to accrue money like that is a pension, and upon researching pensions, one could argue that unless your pension is contribution matched or increased by an employer... you might be better off putting 5k in an isa for the next 40 years and NOT touching it that taking your chances with extra contrinbutions pensions/annuities.

Pensions might grow more... but you don't actually get the money, just trade it in for an annuity product which you might see the full benefit or, or not (likewise with your dependents) - which on the surface looks like a massive gamble as to whether you live and get the money, or something happens and the companies keep it all. The more I looked into; the more it looks like a big fat con and I'll be sure to accrue savings that* I *control as well as whatever pensions I have by the time I retire. ISA's are a great way to do that. Likewise stocks and shares ISAs have an extra allowance too.

That said, I'll still take on what pensions I can. (PJB takes no responsibility for this financial "advice"/opinion).


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## ikon66 (Jul 23, 2008)

eddie bullit said:


> Got debt? Pay that off first before you save. Pay your mortgage off prior to saving any real amount. If you have a mortgage you'll be paying more in interest than you'll get from any savings.
> Edd


Unless, like me, your mortgage interest rate is less than your savings rate


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## McClane (Dec 9, 2010)

kh904 said:


> I'm personally seriously thinking of using a lot of my savings and buying physical gold & silver as they are a good hedge against inflation & the failier of fiat currency that's happening around the world!


The problem with gold currently is that prices are already very high, due to demand and the "security" of it. If things do ease, you'll be losing.

3-5 years ago, and you'd have x'ed your money by 5!! That's not to say it won't go up further... it's just very high currently, which adds a risk to it.


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## Natalie (Jan 19, 2011)

Matt. said:


> Isn't that just a savings account with 2.5% interest?


Was just using it as an example...


ikon66 said:


> Unless, like me, your mortgage interest rate is less than your savings rate


One of the only good things about the recession


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## kh904 (Dec 18, 2006)

-PJB- said:


> The problem with gold currently is that prices are already very high, due to demand and the "security" of it. If things do ease, you'll be losing.
> 
> 3-5 years ago, and you'd have x'ed your money by 5!! That's not to say it won't go up further... it's just very high currently, which adds a risk to it.


I agree, like anything prices go up and down, but after researching quite a bit, gold & silver is a better store of value than fiat currency. Paper currency has come and gone but gold has been money/store of value for thousands of years.

Even though gold is very high, it can (& i believe will) go up much much higher in the medium to long term, especially if governments keep printing money.
The price should have already increased, but they are being manipulated and artificially surpressed by central banks like the Fed Reserve who are loaning gold & dumping it on the market causing an over supply.

House prices have gone down in value v Gold historically. 
It's better to compare the value of 'things' v commodities imo.

It's harder to counterfeit gold than to create money out of thin air. Market forces usually win in the long term when left to it's devices.
Would the Mona Lisa be worth as much if people found out that De Vinci churned them out when needed? The same market forces apply to money (supply &demand).

So when people say we need to devalue the currency to become more competitive you know what they mean (they are stealing your savings)!

Sorry i babbling on again! :lol:


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## McClane (Dec 9, 2010)

True .KH,it depends on your aims!


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## kh904 (Dec 18, 2006)

-PJB- said:


> True .KH,it depends on your aims!


Oh i forgot to say i totally agree with you regarding pensions! :thumb:


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## alexj (Apr 12, 2012)

You do not pay tax on the interest from an ISA 

Every year you build them up so that you dont pay tax on your savings

simples !


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## Guest (Jul 5, 2012)

My Halifax ISA doesn't seem to pay out much!


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## Natalie (Jan 19, 2011)

Wraith2012 said:


> My Halifax ISA doesn't seem to pay out much!


Look into transferring for a better rate 
http://www.moneysavingexpert.com/savings/cash-isa-transfers


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## Guest (Jul 6, 2012)

Natalie said:


> Look into transferring for a better rate
> http://www.moneysavingexpert.com/savings/cash-isa-transfers


Thanks for the link, I will take a look later


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## Matt. (Aug 26, 2007)

Went for the Halifax one.


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## alexj (Apr 12, 2012)

nothing is paying out much at the moment, maybe look at fixed rates for 2 years, still not great, but if youre thinking of leaving it, its ok


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## Guest (Jul 9, 2012)

Yes all the rates are very low at the moment.


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## Natalie (Jan 19, 2011)

I think the Santander one I had was something like 0.1% managed to get 2.75% with Nationwide.
If you know you won't be withdrawing for a few years you can get some ok % 

First Direct are offering 8% aer on their regular saver, I think you need a current account with them to qualify though.


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## Guest (Jul 9, 2012)

First direct sounds good, opening a new account shouldn't be to hard.


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## Guest (Jul 10, 2012)

Matt. said:


> Went for the Halifax one.


What rate did you get


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## Matt. (Aug 26, 2007)

As in the OP, 2.75%!


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## Junior Bear (Sep 2, 2008)

I don't see the point in threads where people have already made their mind up but still ask the question


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## Matt. (Aug 26, 2007)

This is aimed at me?

I didn't make my mind up, which is why I asked the question. If there was something better such as 3.5% then that would of made my mind up. 

But, there was only .25% better offers, so instead of having it with a different Bank, for the sake of .25% I would rather keep it all in the same Bank. Easy transfers etc.

Anyway, why am I explaining myself to you?


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## G.P (Dec 13, 2011)

Junior Bear said:


> I don't see the point in threads where people have already made their mind up but still ask the question


I see many thread's that I don't see the point in, I simply don't read those theads. 



Matt. said:


> Anyway, why am I explaining myself to you?


:lol:


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## alexj (Apr 12, 2012)

lloyds 3.6 % 2 year fixed


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