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ISAs with lower interest rates v higher rate accounts
Horasio
Posts: 6,676 Forumite
I have considered having an ISA - my money is in a higher rate account (instant access)
Which is better, getting the £3000 tax free at a lower rate of interest or having my money in a higher rate account and paying tax on all my savings?
Do you have to tie your money up in an ISA?
Something is putting me off opening off an ISA
Maybe someone can convince me that having one is a good thing
Which is better, getting the £3000 tax free at a lower rate of interest or having my money in a higher rate account and paying tax on all my savings?
Do you have to tie your money up in an ISA?
Something is putting me off opening off an ISA
Maybe someone can convince me that having one is a good thing
An average day in my life:hello: :eek::mad: :coffee::coffee::coffee::T 
:rotfl: :rotfl: 
:eek::mad: :beer:
I am no expert in property but have lived in many types of homes, in many locations and can only talk from experience.
:rotfl: :rotfl: :eek::mad: :beer:I am no expert in property but have lived in many types of homes, in many locations and can only talk from experience.
0
Comments
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It depends are you basic or higher rate tax payer? What are the interest rates for comparison? remember you can have both but only ISA has the yearly limit!0
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Top paying inst access 5.15%, after 20% tax is around 4.1%. Best paying ISA 5.1%.
Then again, move £250 per month from a 5% to a 10% reg saver, effective interest rate over year is 7.5%, after tax it's 6% ish.Happy chappy0
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