Help about new bank savings interest from April 2016

Chivas69

Hi
we currently have money tied up in ISA's and have heard from April 2016 regular savings accounts will not take tax on the first £1000 of interest!
Will this £1000 include any of the interest we currently get from our ISA's?
Basically, if I get £1001 in interest from my ISA can I still then get the £1000 interest from any bank accounts without any tax being taken? Or does any interest gained from the ISA count as part of the £1000 new tax free allowance for savings interest?
Thanks for any replies!

Archi_Bald

Starting in April 2016, Banks/Building Societies will no longer deduct tax from any interest. As a BR tax payer, you will have a £1,000 allowance for interest from non-ISA accounts. Your ISAs will remain unaffected.

Worth noting that just because you pay no tax on your interest doesn't make an account automatically best, or even good. For example, paying tax on 5% interest is a lot better than paying no tax in a 1.5% ISA.

Chivas69

Thanks
So I'd get my ISA interest plus any other savings interest too!
I know what you mean which is why I'm thinking about taking money out of the ISA and putting it into Santander 123 or something similar! Just wanted to make sure it was as well as the ISA interest and not including! I'm thinking 20 grand is better off in a 123 account than in my current HSBC Premier loyalty ISA which is dropping to 1.3% come January!
Thanks for the help

Archi_Bald

Your £20K will be even better off in accounts other than a 123, as its charges can be prohibitive. Lots of better accounts are available: https://forums.moneysavingexpert.com/discussion/5374614