Regular savings - ISA or not ?

Mick70

Have set up a regular savings (500pm) and is going into an ISA , currently @1.35%

I am 40% tax payer, wife is 20%

Am I best off still using an ISA or should i just pick a normal savings account to try get a better rate than that ? I wasnt sure how much interest you can get before being taxed ?

george4064

Firstly, you can compare best savings rates here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

"Basic-rate taxpayers can earn £1,000/year tax-free and higher-rate taxpayers £500."

Which ISA do you currently have at 1.35%?

Also, you really need to provide more information for anyone to be able to give helpful/relevant information to you. Things like your circumstances, what (if any) other assets/savings/investments/property do you own, what your goals are etc...

Mick70

it is with Virgin

soulsaver

Just for clarification - are you paying into a Regular Saver ISA - I can't see one on the current VM ISA offers?

Or are you paying £500 pm into an ISA savings ac (not a regular saver)?

colsten

A regular saver ISA at 1.35% strikes me as a pretty abysmal deal. Up to 2% should be possible to get. Too late now for this year, as you can't generally transfer into a Regular Saver ISA, and you have already started making payments this financial year. Definitely worth reviewing for the next tax year in April. That is, if an ISA makes indeed any sense at all - i.e. are you making more than £500 in interest per annum now, or at any time in the foreseeable future?