ISA or Saver?

jbates

:money: Hi everyone,

After having read the savings page on moneysavingexpert, one of the banks that Martin recommended was Citibank's flexible saver account. Now, I'm a student and earn less than £5433 or whatever it is each year. I've got just over £5000 in savings in a cash ISA at 2.75% AER (interest is paid monthly). Citibank's account is not an ISA, but is currently at 3.65% AER with a variable bonus of 1.65% for 12 months.
My question is, if I were to move my savings from my ISA into this Citibank saver account, would the tax deducted from the interest my savings earn be greater than interest difference between the accounts? In other words, is it worth me changing accounts, or should I just stick with an ISA?


Thanks in advance

Lokolo

The limit is £6035 this year.

As long as you don't earn over £1000 interest you will not have to pay tax on it if it were in savings.