Top Cash ISAs

fuzzytambato

I'm taking voluntary redundancy in September and will have a lump sum of around £50K to invest or save, plus an occupational pension annuity. Is it a genuine 'no-brainer' for me to take out a £20K cash ISA vs a savings accounts with a higher rate of interest. I will inevitably pay some tax on my savings interest but is it a huge difference either way? Thanks in advance!

fuzzytambato

I should add, I am, and will remain, a standard rate taxpayer.

tony_1

Maybe no tax depending on when you get your redundancy and depending on current savings you have.

Sure there is loads of ways to keep tax from nothing to very low.

My quick thoughts.

20k Isa   

10K 1year fix  - 6%  tax due 24/25

 6k  18mth-2year fix  - 6%  tax due  25/26

14k easy access   -  5%  the into isa new tax year

fuzzytambato

Thanks tony - I am just starting to get my head round tax years, interest payment dates and annual personal allowances! The 1year & additional 2year fix combo is not something I would have ever thought about, so thanks for the suggestion.

sheslookinhot

fuzzytambato said:

I'm taking voluntary redundancy in September and will have a lump sum of around £50K to invest or save, plus an occupational pension annuity. Is it a genuine 'no-brainer' for me to take out a £20K cash ISA vs a savings accounts with a higher rate of interest. I will inevitably pay some tax on my savings interest but is it a huge difference either way? Thanks in advance!

Can you add anything to a SIPP ?

fuzzytambato

Thanks for the suggestion, but not really applicable in my case as I'm also taking early retirement and don't intend working again.

Trojan444

My wife and myself have a joint account with Nat West, can we both put the maxi um  amount I.e £20000  each in the Nat West ÌSA? Or transfer existing Isas into the one Nat West account? Thank you

Ozzig

Trojan444 said:

My wife and myself have a joint account with Nat West, can we both put the maxi um  amount I.e £20000  each in the Nat West ÌSA? Or transfer existing Isas into the one Nat West account? Thank you

Assuming you've not already used any of your ISA allowances already, I think you can do both.

From the terms ...

Transferring in balances from other ISAs

You can transfer all or part of any ISA held with another provider to us by completing an ISA Transfer Request form.

Ozzig

On the subject of the Natwest 5.9% 2-year fixed rate, any speculation / advice that could sway me from opening one now and funding when I get the money in a month's time?

masonic

Trojan444 said:

My wife and myself have a joint account with Nat West, can we both put the maxi um  amount I.e £20000  each in the Nat West ÌSA? Or transfer existing Isas into the one Nat West account? Thank you

No, you can't share an ISA. The 'I' in ISA stands for Individual. Each ISA can only be used by one person and is subject to a single annual allowance.