Ulster Bank

Cotta

BOBS wrote: »

I got the same letter - I was thinking of moving my ISA pot over - much better rate than the paltry 0.25% offered on ISA

Do people use ISAs now considering there is no initial tax benefit? Again this is a genuine question and I know there is probably a valid reason to do so.

ballyblack

if your a High rate tax payer or even any kind of tax payer that pay tax after your personal allowance is used up, they make perfect sense.

All interest in ISA is tax free


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Cotta

ballyblack wrote: »

if your a High rate tax payer or even any kind of tax payer that pay tax after your personal allowance is used up, they make perfect sense.

All interest in ISA is tax free


.

After £1000 of interest is earned?

ballyblack

Yes £1000, but its only £500 for higher rate

BOBS

So I can earn £1000 a year from current account interest before i Have to pay tax ???

saverbuyer

BOBS wrote: »

So I can earn £1000 a year from current account interest before i Have to pay tax ???

Yes. And potentially more depending on your other income. If you earn below 16.5k it's more.

BTW all saving interest is paid gross now. Your interest would be getting paid without tax deducted.

BOBS

saverbuyer wrote: »

Yes. And potentially more depending on your other income. If you earn below 16.5k it's more.

BTW all saving interest is paid gross now. Your interest would be getting paid without tax deducted.

Thanks - then perfect for me based on a lower then 16.5k income

Cotta

ballyblack wrote: »

Yes £1000, but its only £500 for higher rate

Useful information, I thought everyone was able to earn £1000 before interest on savings, is there a table with a guide?

Out another note does a bank switching incentive of for example £100 count as interest?