ISA or Normal Savings

gbc123

Hi Folks.

Would you recommend saving £20k which currently moves to the best ISA transfer rate every year, into the highest paying "standard" savings accounts e.g. is there any likelihood that the benefit of the tax free limit on personal interest £1000/£500 gets revoked. I know £20k is some way short of reaching the annual limit but given it may be needed in the next 12-18 months, is there any issue moving it out of the ISA?

Thanks.

:j:beer:

Dazed_and_confused

Everyone with a Personal Allowance can have £18,500 interest before tax is payable on it.

This is gradually reduced the more wages/salary/company benefits/pension/rental income you have but even if you end up with just £500 taxed at 0% you can actually add £100 tax to your overall tax bill.

A lot depends on your exact circumstances.

And only Philip Hammond knows how long the savings nil rate (aka Personal Savings Allowance) will be around.

The savings starter rate (also 0%) has been around longer and is still in place for the current tax year.

Reed_Richards

If you have £20k which you shuffle around to get the best rate but don't add to. And if you anticipate spending this £20k before such time as you will add more savings then I think you should go for the best savings rate available and not worry about the ISA wrapper.