Pay off interest free card, or use savings?

[Delurkingnamechange]

After advice.

Got around £2k in a 0% credit card. Was debt free but added a holiday and Xmas...

Currently have £3.5k saved as a mat leave buffer (not ttc yet). Add around £800 plus over time to this monthly. Minimum £800

Plan to clear the card by Feb - £800-£600-£800. Is there any benefit to just getting rid now?

Savings are in a normal ISA

When does 0% run out? What is interest rate on isa?

There's no benefit other than peace of mind. Unless you have a decent interest rate on your savings and are gaining plenty of interest on the £2k then I'd clear it.

Another 12 months or so at 0%. Unsure ISA rate

0.2%

I have about 3.5k on 0% but have much more in savings. I don't see the point in paying it off, it's not costing me more to keep it but will make sure it's paid off before the 0% runs out. Better to have the cash to hand if I need it!

Pay the card off before end of 0% period. Your 3 month plan for that is fine.

Ditch the Cash ISA. You can get better rates using an online savings provider such as Marcus and as you have under £60k you don't need the ISA wrapper... you can use your Personal Savings Allowance to make it tax free (what this allowance is will depend on your income). Be aware that even online savings accounts pay less than inflation, so in real terms you lose money.

Once you have around 3 months of expenses in your online savings account, start investing in a Stocks & Shares ISA. Also look at your pension situation. Plan for your retirement, however far away that may be.

No point paying off the card, but you can do far better than 0.2% in an ISA. Look on moneysavingexpert or Moneysupermarket to around 1.5% in a Marcus account or similar.

Or transfer your current account to Santander 123 to earn 1.5% for up to £20k and get cashback on your bills that should be more than the £5 pm fee - we get about £4.50 pm, but our bills are lower than average - band A council tax, no pay TV, less than £20 pm sim only mobile phone bills. But it's worth it for the ease of keeping our bills money and savings for annual and irregular expenses all in one pot and the interest. People with more average bills will get a bit more cashback so an even better deal.

Plus if you've got spare money each month to save for maternity leave and are not yet pregnant, you'd do well to look at regular savings accounts - you could get 2.75% on up to a few hundred pounds per month with the right accounts.

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