A certain forum superinvestor wouldn’t get out of bed for that sort of return although he has been known to favour premium bonds at 0% guaranteed.
Which Cash ISA?
- Thread starter Koolpc
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But depending on your situation, might pay tax on a standard savings account
Exactly. The whole reason for going ISA is no tax to pay..
Some things I’m not clear about, hoping somebody can help, not getting a clear answer from ISA providers
1. At the end of the ISA year, does it continue to gain interest, tax-free, (perhaps at an adjusted interest rate) for as long it’s left in place?
2. In subsequent years, can money be added to the same ISA, or must a new one be opened each year? Edit - and interest gained on the total pot?
1. At the end of the ISA year, does it continue to gain interest, tax-free, (perhaps at an adjusted interest rate) for as long it’s left in place?
2. In subsequent years, can money be added to the same ISA, or must a new one be opened each year? Edit - and interest gained on the total pot?
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Depends what ISA fund you use. Some are fixed term meaning at the end you will have to think about transferring to another fund if the interest drops significantly.
Some are flexible funds where the interest rate doesnt fall at a fixed point in time unless via Bank of England adjustments.
You can keep adding to the flexible ISA funds but not the fixed term ones. (£20k limit per financial year).
Some are flexible funds where the interest rate doesnt fall at a fixed point in time unless via Bank of England adjustments.
You can keep adding to the flexible ISA funds but not the fixed term ones. (£20k limit per financial year).
Yes, but it depends on which type of account they move it to. If it’s a fixed interest account, they tell you at the outset what will happen to it when it matures.
Usually only if they move it to an easy access account. You’d be foolish to leave it in an easy access account as they can pay very little interest. It’s easy enough to move to a different account. There’s no problem opening another isa. I have 4 as I started them at different times. As a rule, you shouldn’t keep more than £85k with one provider as that is the maximum account the government will guarantee you get back if the provider crashes. Be careful though - check who is the main provider as a different name doesn’t necessarily mean a different provider.
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The whole idea is you build up a nice lump of tax free ISAs which you move around every year using the ISA transfer process. Then one day if/when you are a higher/top rate tax payer, or have to pay tax on savings, you'll really appreciate having them protected.
I never took advantage of this in my younger years and pay approx 30k extra tax as a result.
I never took advantage of this in my younger years and pay approx 30k extra tax as a result.
Thanks gents, much appreciated
I currently use Plum , 3.5% with additional bonus at year end .
Linked to your current account offers other savings options .
Linked to your current account offers other savings options .
I have one of mine (1 year fixed with Shawbrook) maturing on October 5th. Their best offer to transfer that one is into another 1 year fixed with them at 4.3%. I’ve just opened a 1 year fixed with Nat West at 4.72%. I have until Oct 26th to fund it otherwise it automatically closes. If there is nothing better being offered by early October, I’ll transfer in my Shawbrook one but if I see better offers, I’ll let that one automatically close and go with a better provider.
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Do you have any stocks and shares ISAs? Might be good to balance a bit if not.
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20k this year then it's dropping to 12k in April if you are under 65.
Stupid government.
Number of UK companies listed as half what it was.
We need people to invest in british companies desperately!
So as it stands.
You can put 20k in every year so some have £100.000 plus in cash ISA or stocks and shares ISA.
Yeah tax free.
If a shares doubles in price pay no tax of you cash in
Bingo.Result.
Same as cash ISA although that just keeps up with inflation.
FYI there is a new fund out by vanguard.
Called VALL. Search VALL.
Vanguard FTSE Global All-Cap UCITS ETF
Anyone not started a etf check that one out.
Id be all over that with everything including kitchen sink with the low fee of 0.07% per year.
I currently pay 0.22% per year fee. I'm thinking of switching.
Stupid government.
Number of UK companies listed as half what it was.
We need people to invest in british companies desperately!
So as it stands.
You can put 20k in every year so some have £100.000 plus in cash ISA or stocks and shares ISA.
Yeah tax free.
If a shares doubles in price pay no tax of you cash in
Bingo.Result.
Same as cash ISA although that just keeps up with inflation.
FYI there is a new fund out by vanguard.
Called VALL. Search VALL.
Vanguard FTSE Global All-Cap UCITS ETF
Anyone not started a etf check that one out.
Id be all over that with everything including kitchen sink with the low fee of 0.07% per year.
I currently pay 0.22% per year fee. I'm thinking of switching.
To be honest, I CBA at my age. Maybe if I was younger I might have done. We have enough in ISA’s and just prefer to get a guaranteed 1 year fix on all of them. A fair chunk of our accessible cash is in an easy access account - NS&I at 4.82% - and we've avoided paying too much tax on that as it’s in Mrs Motties name as she retired and has not been getting a work pension (until now) and won’t be getting a state one for a few years so she had a good tax allowance for the interest income but in the next few years we will be topping up our ISA’s from that easy access account so the tax liability on that will naturally reduce. Thankfully, we think we've got enough not to worry about things.
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