ISA vs Current Account
Giddy_72
Posts: 2 Newbie
I should know this, but I don't so i'm asking :-
I get 3% on my current account with Santander.
I keep the balance above £15K so effectively i'm getting 3% savings rate on my £15k savings.
But I am a basic rate tax payer.
I can only get 2.1% on an ISA, so is that better than 3% less tax?
advice please as my brain is all hurty? :mad:
I get 3% on my current account with Santander.
I keep the balance above £15K so effectively i'm getting 3% savings rate on my £15k savings.
But I am a basic rate tax payer.
I can only get 2.1% on an ISA, so is that better than 3% less tax?
advice please as my brain is all hurty? :mad:
0
Comments
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Your getting 2.37% on you s123 so yeah it's better.
Leave it there if your going to use the money in the near future.
If you have no plans then you could put it in an Isa in march for long term investment. E.g nationwide.0 -
Basic rate tax automatically withheld in 20%.
3% minus 20% of 3% is 2.4%. Or 80% of 3% is 2.4%.
Your actual annual return from the 123 depends on whether you pay the full £24 in monthly fees and how much you get in DD cashback.0 -
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cheers chaps. Looks like I do ok where I am then? I get cashback from paying my bills which more than covers the £2 per month fee.
once again, thankyou0 -
But you might want to consider using your ISA allowance for the year even if at the end of the year - tax free interest might prove a valuable benefit at some stage.0
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