ISA v Fixed rate account

kidmugsy

Of course it could be reversed in one go if the cash is taken from a Flexible ISA and returned within the same tax year. That might invite the use of a shorter fixed term than one year, or instead use of a notice account, or perhaps adroit use of an overdraft or other loan on April 5th and 6th, or use of money that the OP has not mentioned. But nonetheless reversing it is perfectly possible. Maybe not worthwhile, but possible.

cloud_dog

polymaff wrote: »

Make your, incorrect, point if you must, but without denigrating my 100% correct statement.

Your statement cannot be correct because I have previously moved a number of tens of thousands of me 'ole ma's money out of ISAs in to better paying easy access / fixed rate accounts. I would never have done it if we didn't have the flexibility to add the money back in to ISAs (albeit gradually).

EDIT: I understand what you are saying but your statement ignores the flexibility of the situation should you need to re-assess.

Reed_Richards

Cowgirl, I think it's impossible to answer the question without knowing more about you. Are you a wage-earner? Do you pay income tax at the standard rate? Is that £30k ISA all the savings you have? Do you plan to build-up a large pot of savings for retirement of are you looking to put-down a deposit on a house?

Cow_girl

Reed_Richards
I am a standard rate tax payer and I have a little more to ivest with it .
I am looking to build up "a pot".
Thanks

Wildsound

Without the OP disclosing more info on the rest of their finances and their income, it's not really possible to say whether taking yourself out of the ISA tax wrapper to search for better savings interest is a good idea or not. A couple of things to consider:

1) There is no guarantee that the government will maintain the ISA allowance as it currently is in the future. They have already been cracking down on pensions (Lifetime Allowance crackdown, maximum contribution levels etc..) , it's only a matter of time before they start targetting ISAs as more and more of the countries wealth gets parked here.

2) You may not be in a position where you are being taxed on your savings or capital gains (if any investments), but in the future you may wish you had kept that £30k in a tax efficient wrapper (e.g. an inheritance comes in, big pay rise/promotion etc...)

Terry_Towelling

polymaff wrote: »

You know that, I know that - but what does this nonsense add to the thread - and how does it serve the OP?

Other than to reveal a perverse attitude and a misunderstanding of the word "reverse".

There's plenty of foolishness on MSE. I just object when it is made on the back of a 100% correct statement of my own.

Forgot about the flexible ISAs.

I understand what you say - it can be galling if you feel you have been made to look stupid by what appears to be a contradiction, but it is important not to infer something in a post that wasn't necessarily there.

If nothing else this shows the OP what they can expect to find on the forum - lot's of bickering and, seemingly, perversion!.

eskbanker

Terry_Towelling wrote: »

Forgot about the flexible ISAs.

Me too, these would indeed make a difference if OP was to consider shorter fixed terms than initially implied.

Terry_Towelling wrote: »

I understand what you say - it can be galling if you feel you have been made to look stupid by what appears to be a contradiction, but it is important not to infer something in a post that wasn't necessarily there.

Just for the avoidance of doubt, my first post on this thread wasn't intended to contradict or to try to make anyone look stupid or to make the personal attack it seemed to be construed as, it was simply aimed at clarifying the situation for OP's benefit.

Terry_Towelling wrote: »

If nothing else this shows the OP what they can expect to find on the forum - lot's of bickering and, seemingly, perversion!.

There are probably other forums to frequent if it's perversion that anyone is after....

Cow_girl

Wildsound
I have v small income and no chance of large bonus or inheritance etc
Cheers

Terry_Towelling

Cow_girl wrote: »

Wildsound
I have v small income and no chance of large bonus or inheritance etc
Cheers

Well targeted, Cow Girl.

As far as savings are concerned, perhaps you just need to chase the best interest rate regardless. Your only decision then is how long to lock it away for. That is potentially where an ISA has a slight advantage; you are able to transfer away from a fixed-term ISA, but this will usually be subject to an interest-penalty.

Locking away for longer periods usually gives better rates but isn't always ideal if something happens and you need some cash in an emergency. Perhaps have some in an easy-access saver as your emergency fund (equivalent to 6 months of bills maybe) and store the rest for a period that suits you best in whatever gives a rate acceptable to you.

There are other ways of doing things like recycling money between notice accounts, high-interest current accounts and regular savers but they are a bit of a faff and that wasn't really the thrust of your question.

polymaff

cloud_dog wrote: »

Your statement cannot be correct because I have previously moved a number of tens of thousands of me 'ole ma's money out of ISAs in to better paying easy access / fixed rate accounts. I would never have done it if we didn't have the flexibility to add the money back in to ISAs (albeit gradually).

EDIT: I understand what you are saying but your statement ignores the flexibility of the situation should you need to re-assess.

Fair point - only fair point made so far.

Although there is no evidence that the OP holds a flexible ISA - and indications that she doesn't (interest rate and fixed-rate type aspirations mentioned), your point is a fair one, and could be as close to a reversal as could occur.

Then you make the highlighted comment. What do you mean by "gradually"?

No - never mind - I don't want to further stimulate Eskbanker