Which is better 3% Isa or 3.45% non Isa for non taxpayer?

mtp123

Sorry if this has been asked before but what is the way to compare rates when you are not a taxpayer?


Thanks question answered below before I had time to realise what a blonde girly I was being!!!!!!!

Lokolo

The AER/gross rate displayed is the rate you will get if you are a non taxpayer.

So the 3.45% is better....

mr_fishbulb

It depends on how much you are saving, how long you wish to save the money for, if you are likely to become a tax payer in the future and when you are likely to become one.

If you are never going to be a tax payer, then I'd say go for whatever one has the highest rate.

If you save a small amount, (few thousand pounds or so) and are likely to be a tax payer in a few years, I'd say put it in the non-isa for now but start moving money into an ISA before you become a tax payer.

If you have a lot of money (£10K plus) and are likely to become an tax payer soon, I'd be tempted to put as much as I can in an ISA.

mtp123

Thanks just realised how dozy I am being, have only just become a non taxpayer (Yippee I think)but will all change next year!!

JimmyTheWig

mr_fishbulb wrote: »

If you have a lot of money (£10K plus) and are likely to become an tax payer soon, I'd be tempted to put as much as I can in an ISA.

Completely agree with this. Please ask if you want an explanation of why.