Savings - ISA or standard account

RCTLisa

My husband and I have a joint account with Yorkshire and a savings account attached. I do all the banking online.

We spent all our savings on our house purchase and I have been looking at opening another "account" to save some money. The plan would be £10 per week plus any overtime etc to be paid in to this new account.

I want it to be easy access but at the same time I don't want to have the chance of spending it either which is what has happened with the Yorkshire savings account. I do want to be able to transfer money from the Yorkshire over to the new account.

So, what is best a savings account in another bank or an ISA and which one is best to go with? (I find it all very confusing)

Lokolo

Ok I assume you are both tax payers here.

On any interest earnt from savings you are taxed at 20% (40% for higher rates). What ISAs mean are that you get the interest tax free.

So if you have £100 interest, in a savings account you would only get £80, whereas in an ISA you would get the whole £100.

ISAs you get £3600 per person per tax year. So thats £7200 between you each. They are Individual Savings Accounts, so joint is not allowed (there have been exceptions in the past from what I remember, Lloyds).

To find the best rates go to https://www.moneysupermarket.com/savings

Baldur

Cash ISAs are, basically just savings accounts but with a tax free 'wrapper' which enables you to receive gross interest with no tax deducted, unlike ordinary savings accounts. Ideally, Cash ISAs offer the best benefits over a reasonably long term, where you could end u having several years' worth of funds earning tax-free interest.

You can't have a joint Cash ISA, they are individual savings accounts, whereas you can have joint savings accounts.