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  • FIRST POST
    • SCO
    • By SCO 9th Jul 17, 3:36 PM
    • 709Posts
    • 143Thanks
    SCO
    ISA or regular saver?
    • #1
    • 9th Jul 17, 3:36 PM
    ISA or regular saver? 9th Jul 17 at 3:36 PM
    I notice a regular saver is a higher rate I'm I better opening a regular saver than an isa
Page 1
    • eskbanker
    • By eskbanker 9th Jul 17, 4:42 PM
    • 5,629 Posts
    • 5,465 Thanks
    eskbanker
    • #2
    • 9th Jul 17, 4:42 PM
    • #2
    • 9th Jul 17, 4:42 PM
    The term 'regular saver' normally refers to a savings account that is geared towards capped monthly contributions, typically of a few hundred pounds, over a period of usually a year. If that's what you mean, then yes, many such accounts pay better than cash ISAs and would therefore often be more suited if you're looking to drip-feed on a regular basis rather than starting with a lump sum.

    On the other hand, I have seen some on here use the term more loosely, i.e. 'regular' meaning standard/normal/taxable, as opposed to an ISA.

    Comparing one account with another simply on interest rates is obviously straightforward but other factors may apply - how much do you have and what options are you considering?
    • jimjames
    • By jimjames 9th Jul 17, 5:49 PM
    • 12,105 Posts
    • 10,561 Thanks
    jimjames
    • #3
    • 9th Jul 17, 5:49 PM
    • #3
    • 9th Jul 17, 5:49 PM
    I notice a regular saver is a higher rate I'm I better opening a regular saver than an isa
    Originally posted by SCO
    If you have neither then yes a regular saver account or current account will pay vastly higher interest than a cash ISA.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • SCO
    • By SCO 10th Jul 17, 6:33 PM
    • 709 Posts
    • 143 Thanks
    SCO
    • #4
    • 10th Jul 17, 6:33 PM
    • #4
    • 10th Jul 17, 6:33 PM
    If you have neither then yes a regular saver account or current account will pay vastly higher interest than a cash ISA.
    Originally posted by jimjames


    Do you pay tax on non isa accounts?
    • SCO
    • By SCO 10th Jul 17, 6:35 PM
    • 709 Posts
    • 143 Thanks
    SCO
    • #5
    • 10th Jul 17, 6:35 PM
    • #5
    • 10th Jul 17, 6:35 PM
    The term 'regular saver' normally refers to a savings account that is geared towards capped monthly contributions, typically of a few hundred pounds, over a period of usually a year. If that's what you mean, then yes, many such accounts pay better than cash ISAs and would therefore often be more suited if you're looking to drip-feed on a regular basis rather than starting with a lump sum.

    On the other hand, I have seen some on here use the term more loosely, i.e. 'regular' meaning standard/normal/taxable, as opposed to an ISA.

    Comparing one account with another simply on interest rates is obviously straightforward but other factors may apply - how much do you have and what options are you considering?
    Originally posted by eskbanker

    I'm looking to feed an account every month, wondering about tax with regular saver.


    I know someone that wants advice of where best to put over 5k?


    Thanks
    • firely2327
    • By firely2327 10th Jul 17, 6:35 PM
    • 125 Posts
    • 62 Thanks
    firely2327
    • #6
    • 10th Jul 17, 6:35 PM
    • #6
    • 10th Jul 17, 6:35 PM
    in short, yes, tax on non-isa accounts applies
    • eskbanker
    • By eskbanker 10th Jul 17, 6:47 PM
    • 5,629 Posts
    • 5,465 Thanks
    eskbanker
    • #7
    • 10th Jul 17, 6:47 PM
    • #7
    • 10th Jul 17, 6:47 PM
    in short, yes, tax on non-isa accounts applies
    Originally posted by firely2327
    No, that's too short!

    Unless OP earns more than £1,000 in annual interest from non-ISA savings then there will be no tax to pay (or the limit is £500 for higher-rate taxpayers).

    The introduction of the Personal Savings Allowance last year meant that cash ISAs thereby became even less competitive and relevant than before, for the vast majority, and so very few need to take tax into account when evaluating ISAs versus other types of account.
    • jimjames
    • By jimjames 10th Jul 17, 11:23 PM
    • 12,105 Posts
    • 10,561 Thanks
    jimjames
    • #8
    • 10th Jul 17, 11:23 PM
    • #8
    • 10th Jul 17, 11:23 PM
    Do you pay tax on non isa accounts?
    Originally posted by SCO
    What's better, 5% taxed or 1% tax free? Even the 5% is likely to be tax free outside an ISA now
    Remember the saying: if it looks too good to be true it almost certainly is.
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