isa or savings with c/a

phoebe03cat

Sorry looked but cant find the tool that compares. I have £5000 which I need to keep flexible. Would I be better off in Lloyds 3% current a/c or Nationwide 1.75% isa as a standard taxpayer. Thanks for help

YorkshireBoy

3% less 20% savings interest tax is 2.4%


So you're comparing 2.4% with 1.75%.


No "tools" required.

ceredigion

Its not quite as simple as that , if you receive family tax credit ,the interest on your investments counts as income and therefore has a bearing on your benefit. If its wrapped in a isa, it doesn't .

longtermplanner

"Family tax credit" doesn't exist. However income for ISAs is ignored if you are getting Child and /or Working Tax Credit, see http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm

YorkshireBoy

ceredigion wrote: »

Its not quite as simple as that , if you receive family tax credit ,the interest on your investments counts as income and therefore has a bearing on your benefit. If its wrapped in a isa, it doesn't .

It's a good point, and thank you for correcting me, but the sum involved (£148 gross per annum) might be unlikely to dramatically impact on any 'benefits' being claimed?