Is it better to put £20k in Virgin Money ISA than Santander 123?

19
Found 16th Mar
In my Santander 123 I currently earn about £25 interest monthly. After £5 monthly fee and 2 direct debits it's £18 monthly interest.

With Virgin Money ISA 1.21% I would earn about £20 monthly on £20k without need for direct debits and has instant access.

Is this correct?

I know this would be using ISA allowance but just asking as I wished the £5 monthly fee ended.

TIA.
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19 Comments
Are you sure you have the numbers right? £25 interest less £5 fee should leave you with £20. As with regards to DD you actually earn cashback on eligible payments. this should boost the £20 you have - so not sure how you arrive at £18
Original Poster
astreix4 m ago

Are you sure you have the numbers right? £25 interest less £5 fee should l …Are you sure you have the numbers right? £25 interest less £5 fee should leave you with £20. As with regards to DD you actually earn cashback on eligible payments. this should boost the £20 you have - so not sure how you arrive at £18


Thanks. At the moment I use Tesco Bank for 2 free Direct Debits. But in April I will use 2 £1 charity direct debits. I don't pay any utilities so it would be £25 interest minus the monthly fee and direct debits.
I have the same dilemma. I actually ended up putting £xxk into Premium bonds. You of course don't get any interest but i've had £75 in prizes since January (made up of 3 x £25 prizes).
The £75 prize is more than i would have received in Interest and you run the chance of winning a bigger prize like £100 or even £1000000 if you're lucky!

Odds of premium bonds are pretty low if you only have £1000 or a few hundred £ but at £20,000, you will stand a good chance of winning something most months.

Also, no fees and no Direct debits etc needed.
CaptainVolvo2 m ago

I have the same dilemma. I actually ended up putting £xxk into Premium …I have the same dilemma. I actually ended up putting £xxk into Premium bonds. You of course don't get any interest but i've had £75 in prizes since January (made up of 3 x £25 prizes). The £75 prize is more than i would have received in Interest and you run the chance of winning a bigger prize like £100 or even £1000000 if you're lucky!Odds of premium bonds are pretty low if you only have £1000 or a few hundred £ but at £20,000, you will stand a good chance of winning something most months. Also, no fees and no Direct debits etc needed.


Great

Can you withdraw money when you wish or are you locked in for a certain period.

Is this backed by FCA?? Is money safe?
whoMODStheMODS32 m ago

Thanks. At the moment I use Tesco Bank for 2 free Direct Debits. But in …Thanks. At the moment I use Tesco Bank for 2 free Direct Debits. But in April I will use 2 £1 charity direct debits. I don't pay any utilities so it would be £25 interest minus the monthly fee and direct debits.


You have £20k and no utilities to pay

Remember that ISA is variable and the annual limit is lost once the year closes. Limiting flexibility of where you can move the money.
Though keep in mind next year, you can transfer your ISA to a different account, including interest earnings and add more to it next year. Santander drops to 0.01% over £20k.

If you don’t need fluid access to the money then probably ISA is the better long term option.

Alternatively buy 4 Bitcoins and clench tight ....not official financial advice.
rambobambo24 m ago

GreatCan you withdraw money when you wish or are you locked in for a …GreatCan you withdraw money when you wish or are you locked in for a certain period.Is this backed by FCA?? Is money safe?


When you deposit funds, they are active after 30 days time on the 1st of the month. So if you deposited today, you would be eligible for the first draw on 1st May and every month following.

You can draw money out at any time and it takes about 3 days to go back into your bank account.
Any withdrawals would of course mean those bonds would no longer be eligible and if you withdrew the full amount, you would need to wait the 30 days+ again for them to be eligible if you re-deposited them.

They are actually backed by the Treasury and are 100% secure/safe - nsandi.com/why…ury

Hope that all makes sense.
I weighed up all the different options and this was the most sensible in my opinion
Original Poster
Oneday7717 m ago

You have £20k and no utilities to pay Remember that ISA is variable and …You have £20k and no utilities to pay Remember that ISA is variable and the annual limit is lost once the year closes. Limiting flexibility of where you can move the money. Though keep in mind next year, you can transfer your ISA to a different account, including interest earnings and add more to it next year. Santander drops to 0.01% over £20k. If you don’t need fluid access to the money then probably ISA is the better long term option. Alternatively buy 4 Bitcoins and clench tight ....not official financial advice.


I currently live with parents. I was hoping to put 16k in to the Virgin Money ISA this tax year and next year also but already paid in to my Help to Buy ISA.
Original Poster
CaptainVolvo35 m ago

I have the same dilemma. I actually ended up putting £xxk into Premium …I have the same dilemma. I actually ended up putting £xxk into Premium bonds. You of course don't get any interest but i've had £75 in prizes since January (made up of 3 x £25 prizes). The £75 prize is more than i would have received in Interest and you run the chance of winning a bigger prize like £100 or even £1000000 if you're lucky!Odds of premium bonds are pretty low if you only have £1000 or a few hundred £ but at £20,000, you will stand a good chance of winning something most months. Also, no fees and no Direct debits etc needed.


Thanks, I will have to read up on premium bonds.
whoMODStheMODS10 m ago

I currently live with parents. I was hoping to put 16k in to the Virgin …I currently live with parents. I was hoping to put 16k in to the Virgin Money ISA this tax year and next year also but already paid in to my Help to Buy ISA.


Cant you only have one ISA? in which case 123
whoMODStheMODS12 m ago

I currently live with parents. I was hoping to put 16k in to the Virgin …I currently live with parents. I was hoping to put 16k in to the Virgin Money ISA this tax year and next year also but already paid in to my Help to Buy ISA.


Ask your parents to let you own the direct debits. By al means get the cash from them to cover the DD. It would save you the £2.
Also assuming you want to get a mortgage. You should have some form of credit footprint. Mobile phone, credit card paid in full each month etc. Without you will struggle to prove you are a responsible borrower. Cash in that case isn’t always king.
whoMODStheMODS30 m ago

I currently live with parents. I was hoping to put 16k in to the Virgin …I currently live with parents. I was hoping to put 16k in to the Virgin Money ISA this tax year and next year also but already paid in to my Help to Buy ISA.


I would* really look at transfering your Help to buy ISA into a lifetime ISA. Then put £16k into a cash ISA or in premium bond. The last £4k put into the lifetime ISA on the first day of the new tax year.

*This is not financial advice for you but what I would do for myself based on the information provided.
Original Poster
jimhuf40 m ago

Cant you only have one ISA? in which case 123


Thanks. Ive maxed that.
Original Poster
GAVINLEWISHUKD19 m ago

I would* really look at transfering your Help to buy ISA into a lifetime …I would* really look at transfering your Help to buy ISA into a lifetime ISA. Then put £16k into a cash ISA or in premium bond. The last £4k put into the lifetime ISA on the first day of the new tax year.*This is not financial advice for you but what I would do for myself based on the information provided.


Thanks, this has already been done.
Original Poster
Oneday7738 m ago

Ask your parents to let you own the direct debits. By al means get the …Ask your parents to let you own the direct debits. By al means get the cash from them to cover the DD. It would save you the £2. Also assuming you want to get a mortgage. You should have some form of credit footprint. Mobile phone, credit card paid in full each month etc. Without you will struggle to prove you are a responsible borrower. Cash in that case isn’t always king.


Thanks, I probably should do this.
whoMODStheMODS17 m ago

Thanks, this has already been done.


Well if you want quick access and a low risk then I would go with premium bonds. The official average rate is 1.4%. You might win more or less. Also when you have spare cash you can just buy more. It soon adds up.
In my view a Cash ISA is really to protect against future interest rate rises as you will never pay tax on the interest. At the moment you probably need about £60K of savings until you breach your £1000 tax free savings limit and start paying tax on the interest. If the base rate moved up a couple of percent (admittedly highly unlikely in the foreseeable future) you could use up your savings allowance with about £30K of savings .

I mix and match (5% on Nationwide regular saver) - 3% on a couple of TSB current accounts , some in Stocks and Shares ISAs (can be a different provider to your Cash ISA but total Cash +S&S ISA s still £20K ) and some in a Cash ISA. I also have Premium Bonds which do tend to average out near the 1.4% mark once you have over £20K worth .

The comfort of a Cash ISA is that even 20 years down the line , the money you put in today will still earn interest tax free.
Edited by: "rogparki" 16th Mar
CaptainVolvo4 h, 16 m ago

When you deposit funds, they are active after 30 days time on the 1st of …When you deposit funds, they are active after 30 days time on the 1st of the month. So if you deposited today, you would be eligible for the first draw on 1st May and every month following.You can draw money out at any time and it takes about 3 days to go back into your bank account.Any withdrawals would of course mean those bonds would no longer be eligible and if you withdrew the full amount, you would need to wait the 30 days+ again for them to be eligible if you re-deposited them. They are actually backed by the Treasury and are 100% secure/safe - https://www.nsandi.com/why-save-with-us?WT.z_search=treasuryHope that all makes sense. I weighed up all the different options and this was the most sensible in my opinion


Thanks for the help and time..
Original Poster
GAVINLEWISHUKD3 h, 47 m ago

Well if you want quick access and a low risk then I would go with premium …Well if you want quick access and a low risk then I would go with premium bonds. The official average rate is 1.4%. You might win more or less. Also when you have spare cash you can just buy more. It soon adds up.



rogparki2 h, 7 m ago

In my view a Cash ISA is really to protect against future interest rate …In my view a Cash ISA is really to protect against future interest rate rises as you will never pay tax on the interest. At the moment you probably need about £60K of savings until you breach your £1000 tax free savings limit and start paying tax on the interest. If the base rate moved up a couple of percent (admittedly highly unlikely in the foreseeable future) you could use up your savings allowance with about £30K of savings .I mix and match (5% on Nationwide regular saver) - 3% on a couple of TSB current accounts , some in Stocks and Shares ISAs (can be a different provider to your Cash ISA but total Cash +S&S ISA s still £20K ) and some in a Cash ISA. I also have Premium Bonds which do tend to average out near the 1.4% mark once you have over £20K worth .The comfort of a Cash ISA is that even 20 years down the line , the money you put in today will still earn interest tax free.


Thanks.
Original Poster
jimhuf12 h, 56 m ago

Cant you only have one ISA? in which case 123


I've transferred my HTB ISA in to Lifetime ISA so can open and pay in to a cash ISA.
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