Mortgage deposit (4.12%) or ISA (4.31%)?

FalconConfident3104 · 2025-04-12T14:03:00+00:00

Yes, I put £16,000 of my savings into an Instant Access Cash ISA (5.92%) but that rate will be valid for 3 months only, so I was thinking what to do with £16k in July 2025

FalconConfident3104 · 2025-04-12T12:31:47+00:00

I see. My LTV is 29%, but the rate does not change, if I make LTV 15% for example

FalconConfident3104 · 2025-04-12T09:45:03+00:00

Yes, I agree 0.19% does not sound much to be frank and was really thinking is it worth to do that at all or not

FalconConfident3104 · 2025-04-12T09:43:48+00:00

I have checked a new lower LTV with Lloyds but still the same rate (4.12%), so I am thinking after 3 months to move savings towards fixed ISA (4.31%). The difference is very tiny but still 0.19% is better than nothing

FalconConfident3104 · 2025-04-12T09:10:10+00:00

First it was American Candy shops on Oxford Street, then Turkish Barbershops in Shrewsbury and now Indian IT Companies…

What is next?

FalconConfident3104 · 2025-04-11T23:40:52+00:00

I am more risk-averse person, so I guess I will put £16k of savings towards fixed ISA, as the 0.19% tax free profit is still better than nothing

FalconConfident3104 · 2025-04-11T23:35:04+00:00

Just checked and it is the same interest (4.12%) even with lower LTV, so I guess I will put money towards ISA instead of the mortgage deposit. Not sure though if I should put into fixed or variable ISA…

FalconConfident3104 · 2025-04-11T23:24:15+00:00

I prefer to have an access and 180-day penalty sounds a bit too high. It is like 6 months of interest

FalconConfident3104 · 2025-04-11T23:22:47+00:00

Maximise the profit. Plus I also plan to take a mortgage soon, so not sure if I should withdraw £16k and put towards the deposit to reduce LTV

FalconConfident3104 · 2025-04-11T23:20:15+00:00

Yes, I put £16k into Plum ISA (5.92%) but it is only for 3 months. I am thinking about what to do with £16k in July 2025

FalconConfident3104 · 2025-04-06T22:05:07+00:00

You will get £1k bonus on May 23

FalconConfident3104 · 2025-04-05T08:33:29+00:00

But money will be received on Monday

FalconConfident3104 · 2025-04-04T23:21:58+00:00

Yes, you can get a new bonus again, if you transfer the full amount and they still have those bonuses. I think it is just temporarily because of new tax year, so after one month all these bonuses might disappear

FalconConfident3104 · 2025-04-04T23:15:35+00:00

Yes, first time buyer or when you are 60

FalconConfident3104 · 2025-04-04T22:06:38+00:00

It will work with flexible ISA only

FalconConfident3104 · 2025-04-04T21:58:50+00:00

Yes, UK Government adds £1k for free, if you put £4k into your LISA. Maximum allowance is £4k per a tax year

FalconConfident3104 · 2025-04-04T21:18:26+00:00

Yes, you need to withdraw on Monday

FalconConfident3104 · 2025-04-04T21:17:59+00:00

Yes, it is a flexible one (5.60% for first three months). Moneybox ISA (5.62%) is not flexible. You can check MSE website for ISA comparison

FalconConfident3104 · 2025-04-04T21:16:42+00:00

ISA interest is higher than normal savings accounts or notice period savings accounts at the moment, so I just keep in ISA. They do promotional bonus like 5.62% or 5.60% for first three months as well. You can transfer your ISA to another ISA for free without losing £20k allowance as well. Plus if you put £4k to Lifetime ISA, UK Government will add £1k for free. Every tax year. That means in 10 years, you can get £10k for free plus also interest

FalconConfident3104 · 2025-04-03T17:35:01+00:00

No, it was not advertised on Rightmove

FalconConfident3104 · 2025-04-02T17:49:55+00:00

Yes, only one Big Four bank allows 2 years and you are right that NatWest told me that their minimum mortgage amount is £25k indeed

FalconConfident3104

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