Cash isa's and savings account differences?

dr_del

Hi,

I have this years isa allowance and a bit more left after that.

Does putting money into this;
https://www.vanquissavings.co.uk/1-year-fixed-rate-bonds/?utm_source=moneysupermarket&utm_medium=referral&utm_campaign=mse&utm_term=1year

Reduce my isa allowance or can I stick 20k in one and still have my 20k isa allowance still to invest?
The more I look the more confused I get.

del

JGB1955

That's a fixed rate bond, not an ISA. You can invest £20k in an ISA AND up to £250k in the bond. Any interest in the bond will be taxable.

Albermarle

Any interest in the bond will be taxable.

To the OP - the above is correct, but whether you actually have to pay any tax on the interest will depend on your personal taxation status, other savings accounts etc .

A basic rate taxpayer can earn up to £1000 pa in interest tax free . 

margaretx9

Albermarle said:

Any interest in the bond will be taxable.

To the OP - the above is correct, but whether you actually have to pay any tax on the interest will depend on your personal taxation status, other savings accounts etc .

A basic rate taxpayer can earn up to £1000 pa in interest tax free . 

Good luck with reaching that total given current rate reductions.
I have just worked out that my Nationwide flexclusive isa - an old account I hold with a small balance which used to pay a good market leading rent - will pay a total of £1 in interest (tax free) from a year for every £10,000 invested once rates are cut next month! That is an account solely for NW current account holders.
Best to shop around!