My 20K 2 Year Fixed Isa Has Just Matured. Where To Put It Now

[kaw69]

Hi my 20k ISA has matured and I am looking to put it where the best interest is.
I have a santander 123 current account which pays 3% but tax is taken off but it still seems the place to put it as all the banks ISA`s are paying measly amounts tax free.
What does the Santander interest rate of 3% minus tax work out at?
TIA

[bednobs]

higher or lower rate?

[kaw69]

Lower rate

[ubasses]

as a basic rate taxpayer you would get 2.4% and 1.8% as a higher rate.

[Fibonacci]

nb 3% interest only paid on 123 account balances up to £20,000 anything over this amount earns no interest.

[kaw69]

Thanks Fib
I realise that I can only put 20k in but that is what I have.

[Fibonacci]

You will need to fulfil the other conditions of the account.
ie.
£2 monthly fee
Pay in at least £500 each month - transfers between Santander personal accounts won't count towards this
Have at least 2 Direct Debits - you'll receive cashback on any qualifying household bills you pay by Direct Debit.

[fiction-factory]

kaw already has the 123 account though, Fibonacci

[SirOracle]

If married can he open another 123 a/c in his wife's name FF.?

[alavahalf]

If your ISA has just 'Matured' you have obviously had it tied up for some time. Why would you now want to loose the ISA wrapper it now has, by putting it in a savings account ?
Surely the only way forward is to retain the ISA wrapper and re-invest in another ISA to compound the tax free growth.
You can invest in an ISA without tying your capital up for a given period.

[kaw69]

Thanks FF
Yes I already get 1% council tax 2% phone, utils etc etc
I am not looking to use my current years ISA allowance as circumstances have changed by downgrading my lifestyle from work-all-hours and earn a lot to 55 hours a week and live a little longer (hopefully) and enjoy some time off.

[kaw69]

Also I am (happily) single

[Gizmonster]

You've downgraded your lifestyle and now only work 55 hours per week ??
Jeez - what did you work before ??

Don't forget, as from April 2016, you can earn £1000 interest a year, without having to pay tax (basic rate tax payer), so your 3% on your £20,000 will yield £600, which will all be tax free .... unfortunately it's not until next April, but it's something to bear in mind.

A good read here:

http://www.thisismoney.co.uk/money/saving/article-3010018/Has-Chancellor-George-Osborne-s-radical-Budget-reform-killed-cash-Isa.html

[kaw69]

Hi Giz
I work on a farm so until I changed farms with the conditions I wanted, I was working 70+ hours a week

[kaw69]

So 15 hours+ a week overtime given up, means a substantial reduction of income but I have now got some time off, which until a short time ago I did not realise I could do other things besides work and occasionally play.
Happy times ahead although poorer (lol)
It has halved my income as the hours I have given up on overtime equates to a normal income

[fiction-factory]

alavalf- I don't think the ISA wrapper will be of much value going forwards given that income from all savings will not be taxable for most people going forwards- I think it's from next April

[kaw69]

Thanks to all especially ubasses I think I will put it into my 123 a/c and get 2.4% which is better than most ISA`s

[ukbod2015]

Are we to late for the age bond - £10000 gives 4% per person over 3 years if you are over 65