Keep savings in ISA instead of pots

Hey guys!

Just hadn’t an idea but don’t understand enough of the ISA to actually make sense of it.

Would it make more sense for me to keep all the money saved in the ISA pot rather than the normal pot?

Knowing that there might be some movement and I might add and withdraw money from time to time?

Would it make any “investment” sense for me to do that or not really?

Hope someone is a bit more savvy than me on that subject

Taa

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Hey Benjamin :wave:

It’s a good idea, it really depends though. Firstly: you must have at least £500 in the pot, and you must have £500 in there to keep it open. The more you withdraw, the less interest you get, the longer you keep it there, the more you get. (The interest rate stays the same but obviously if you’re lowering the balance you will have less money to earn interest on)

It can take up to one working day for your money to be with you after you withdraw, unlike pots where it’s in your account instantly, so this would not be a good idea for those “emergency situations”.

Hope this helps :slight_smile:

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Pots work well for small targets that you’ll be spending in the short term. Anything long term should really be in whatever cash savings account pays the most interest. I would personally look at a comparison website and pick the highest paying account from a company you trust. I use Marcus.

I wouldn’t recommend a cash ISAs for significant sums of money. The return isn’t brilliant; you’d be better off investing any long-term savings. You’re also not likely to reap any benefit from the tax wrapper unless the interest rate is insanely high (which they aren’t) or you’ve got huge sums of cash (which should really be invested instead).

Do use a cash ISA to save if you are risk averse and will put money in.
Don’t use a cash ISA to TAKE money out to a bank account UNLESS it is a FLEXIBLE cash ISA because if it isn’t FLEXIBLE you will lose part of your £20000 allowance.
For example . Put in £1000 to cash ISA. Your yearly allowance left is now £19000. Take out to your bank account £500 so £500 left in ISA. A month later put the £500 ‘back’ in ISA. Your allowance has now gone down to £18500. The Monzo ISA is not a Flexible one (ignore name) it has to say in T&Cs it is Flexible to be one.

I think support have confirmed it is a flexible ISA. Another benefit over OakNorth direct.

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I remember seeing that someone took of a screenshot of a live chat. I wonder if someone from :mondo:could confirm on here.

I haven’t seen any Monzo T&Cs for ISA they are offering as you can’t access any. However if open an easy access ISA with Oak North it specifically says in their T&Cs that it is NOT a flexible ISA. Maybe someone who has opened a Monzo OakNorth ISA can look at T&Cs & tell us?.

It is a flexible ISA, I’ve had it confirmed by Monzo. I’ve asked if someone gets time today to pop on and officially clarify.

I’ve also had customer support say its a flexible ISA.

However, it is irritating we can’t see the T&Cs to confirm for ourselves. Every other bank puts their ISA T&Cs clearly on their website so they can be inspected prior to applying to open an account.

If flexibility is important to me, I personally wouldn’t open the ISA unless I can confirm what customer service are saying via the T&Cs document.

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I know this isn’t the T’s and C’s, but I asked this last month…

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Thanks