Isa or savings account

etak1

Is it worth keeping money in an ISA even though savings accounts are tax free at the moment in case this is reversed (you start getting taxed on savings)?

grumiofoundation

Savings accounts aren’t tax free. First £1000/£500/none of income from savings (depending on tax band) is taxed at 0%.

https://www.gov.uk/apply-tax-free-interest-on-savings

If you think there is a chance you will pay tax on savings income in future (especially if you to become HRT) it may be worth saving in an ISA. 

May also want to use cash ISAs as a place to ‘store’ cash you will want to invest in Stocks and Shares ISA at some point in the future. 

That said for most people cash ISA vs higher paying normal savings accounts It’s better just to take the higher interest as they aren’t close to the personal savings allowance and ISA limits won’t be a problem in the future. 

masonic

According to the DWP, 70% of households have less than £10k in savings, so if you are part of that majority you could quite easily move your money back into a cash ISA should the need arise, so focus on the accounts paying the best net rate of interest.

RobM99

Don't get a Santander ISA!   Their "rate" is currently 0.01%   Oooh!