What should I do with my savings and ISA?

[poptartsmart]

I have £5,000 in a Nationwide ISA paying 1% interest. Had it a couple of years.

Have about £4,000 of other money.

Is there a great ISA I should be sticking all the money in? Or putting it elsewhere?

We've just started saving for a deposit for a house and hope to be in a position to do so in about 18 months. Plan on saving about £1,250 a month where we can although expect to dip into that if needed.

there are no ISAs paying above inflation - which is not zero. The point of the ISA is the tax break, but that is now questionable.

there are no 'great' savings rates. I think your best bet is:

open a Santander 123 current account (3% on up to 20k) and a Club Lloyds account (4% on up to 5k). Set up standing orders between the two to meet the paying-in conditions. Both need two direct debits but you should have those. You also get small cashback on the Santander account.

your partner can do the same.

Thank you I will look into those.

I have 2 * 3% interest bank accounts but only up to £5k each and I hate the restrictions of having to have deposits/direct debits and control myself not to spend the savings part in them.

Just opened a 1.4% post office easy access online ISA to transfer current ISA into, couldn't find anything else which was easy access and higher.

Interest rates are very poor just now.

If you're prepared to take a risk, stocks and shares ISAs offer potentially greater returns. I have a FTSE 250 tracker with Hargreaves Lansdown that has grown over 6%, though of course any gains could be wiped out if there was another market crash.

wings not clear what your problem is. Savers are dirt to the government and we have to work to get any kind of return, but once all the deposits/DDs are set up, that's it.

having savings always means self control. Of course your 3% is taxable, but if you don't pay much or any tax moving to that ISA means you are throwing away half the interest you could get.

you can get higher than that rate, although not much.