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ISA interest
ralphieboy
Posts: 2 Newbie
I have just plumped for a 3 Year Fixed Rate ISA with Nationwide and decided to have the interest paid out each year into my bank account. My question is this : will I have to pay tax on that interest?
Would be grateful for advice on this.
Would be grateful for advice on this.
0
Comments
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No - the interest paid on the ISA is tax-free. However, interest earned on that interest subsequently will be taxable.
That's why it is better if you can leave the interest in the ISA if you can - so the rolled up tax-free interest earns tax-free interest.0 -
As above, you're not going to get the benefit of compounded tax-free interest by having it paid to a different account.0
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As long as you leave the interest in your ISA you wont pay any taxmake the most of it, we are only here for the weekend.
and we will never, ever return.0 -
Many thanks for your speedy replies. I will arrange for the interest to be left in the ISA, I think.
:T0
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