ISA v Pensioner Bonds

kuepper

I've about £25000 in an easy access ISA currently paying 1.5%. I've been wondering about whether to put £20k of the ISA into the 1 and 3 yr pensioner bonds before the deadline on may 15th. Now i've just read about the personal interest allowance of £1000 announced in the budget and if I've understood it correctly this will mean the interest off the pensioner bonds that I''d get next April won't be taxed so in real terms they'll be like a 2.8% 1 yr ISA and a 4% 3 yr ISA. Seems a no-brainer to go for the pensioner bonds but I just wondered if I'm missing something?

Archi_Bald

The £1,000 tax free interest might never happen. Wait a bit until we know who the next government is.

kuepper

Archi_Bald wrote: »

The £1,000 tax free interest might never happen. Wait a bit until we know who the next government is.

seems certain enough acc to mse, main parties have said they would leave it

bigfreddiel

Archi_Bald wrote: »

The £1,000 tax free interest might never happen. Wait a bit until we know who the next government is.

This is absolutely correct, it's not been approved yet, in fact it is not even mentioned in the latest finance act

May never happen. And will definitely not happen if Balls is involved

Cheers fj

AndyPK

as you have over £24k you should have put it in yorkshire bank ISA and got 2%. Not sure if that's available nationwide anymore.

If it were me I would put money in the 3 year one.