MSE News: Cash ISA year ends Sunday: Get up to 2.25% tax-free interest

A loophole uncovered by MoneySavingExpert enables you to get out of paying any income tax on next year's earnings...
Read the full story:

Cash ISA year ends Sunday: Get up to 2.25% tax-free interest

OfficialStamp.gif


Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
«1

Comments

  • jimjames
    jimjames Posts: 17,578 Forumite
    Photogenic Name Dropper First Anniversary First Post
    I'm afraid as usual I disagree with the headlines

    Most people should grab up to 2.25% cash ISAs
    Earn 5% but taxed, if you're willing to switch bank account.

    I don't think either of these statements are correct and will mislead people into getting a cash ISA that don't need one.

    1) Most people (ie over 50%) have under £2000 of savings so they can fit all that in a TSB account at 5% which beats any ISA and has instant access.

    I think headline should be the opposite - Most people shouldn't grab a fixed cash ISA

    2) No need to switch bank account at all. I have a TSB account that is completely separate to my main account and haven't switched.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Vortigern
    Vortigern Posts: 3,243 Forumite
    First Anniversary Photogenic Name Dropper First Post
    MSE_Helen wrote: »
    A loophole uncovered by MoneySavingExpert enables you to get out of paying any income tax on next year's earnings
    April Fool Joke????
    :rotfl::rotfl::rotfl:
  • This is a bit pointless giving us last minute info - the two accounts that I just tried to open will only accept payments by cheque until I have sent them a form to confirm my ID. Fair enough of course, but this isn't a last minute option!
    Also who still uses cheques?! I haven't used one or been sent any for years!! Will the bank issue one? I don't want an entire book :(
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Well, you had in the order of 360 days to get an ISA for 2014-15 sorted.....but you might actually do better outside an ISA, so the cheques could have saved you from making a bad decision. How much do you want to save, and for how long?
  • Thanks, I agree, I've just checked out the TSB saving account that was mentioned earlier :)
  • Vortigern
    Vortigern Posts: 3,243 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Thanks, I agree, I've just checked out the TSB saving account that was mentioned earlier :)
    I think you meant the TSB current account.
  • sammybee
    sammybee Posts: 65 Forumite
    i got a new isa last april 2014 and transfered my old one into it, the 2014 was a fixed rate for18months, i didnt realise when i came to top it up late last year that i wasnt allowed to, so i have not put into it for about 7months ,which was very dissapointing, can i get a new one this april and leave that 2014 one standing or are you not allowed to do that until the 18months are up and then transfer my funds to a new one. My partner has the same problem with a 2 year fixed....grrrrrr
  • eskbanker
    eskbanker Posts: 30,763 Forumite
    First Anniversary Name Dropper Photogenic First Post
    sammybee wrote: »
    i got a new isa last april 2014 and transfered my old one into it, the 2014 was a fixed rate for18months, i didnt realise when i came to top it up late last year that i wasnt allowed to, so i have not put into it for about 7months ,which was very dissapointing, can i get a new one this april and leave that 2014 one standing or are you not allowed to do that until the 18months are up and then transfer my funds to a new one. My partner has the same problem with a 2 year fixed....grrrrrr
    Yes, you can get a new one on or after Monday without affecting the old one, but to avoid disappointment, read and understand the Ts & Cs, or at least the key information in the product summary! It's normal for fixed rate products to have limited time windows within which to contribute, so if you're looking for something you can keep adding to, go down the variable route.

    The usual MSE forum caveat applies: cash ISAs may not be the best place for your funds at all as there are numerous options that will give a better return for most, such as interest-paying current accounts, regular savers, etc....
  • sammybee
    sammybee Posts: 65 Forumite
    thankyou for your fast reply eskbanker, i wasnt 100% sure, i will be reading up more on here and looking for the best ones to suit us

    regards sam :T
  • badger09
    badger09 Posts: 11,190 Forumite
    First Post First Anniversary Name Dropper
    sammybee wrote: »
    thankyou for your fast reply eskbanker, i wasnt 100% sure, i will be reading up more on here and looking for the best ones to suit us

    regards sam :T

    Don't just read on here. When you think you've found an ISA, or probably better, a high interest paying current account, which suits you - read the T&C on the bank's website. ;)

    Most regular posters on here are helpful and knowledgeable, but they're also human and sometimes make mistakes, or their information is out of date :o
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.9K Banking & Borrowing
  • 250K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235K Work, Benefits & Business
  • 607.7K Mortgages, Homes & Bills
  • 172.9K Life & Family
  • 247.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards