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Should interest remain in ISA?

Hi,

I think I already know the answer to this, but thought I would ask all you experts! Is it best to leave the interest earnt on an ISA within that account rather than having it paid into your link account? Seems to make sense to leave it their to accumulate tax free...? Is that logic correct?

Thanks...

Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    That is absolutely correct.
    Put it somewhere else, you will probably spend it and/or you will pay another tax on the interest of the interest.:eek:
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • I better get the HSBC to cancel it going into my current account then! I have only started thinking about this since getting the transfer form, thanks.
  • ses6jwg
    ses6jwg Posts: 5,381 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Some people require the interest to live off e.g. pensioners with a large amount of savings

    However for most people its a better option to compound it.
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