Where shall I put my money? ISA or not?

fatboyonadiet

Basically got 2 savings accounts, an ISA one (which I under-use, don't know why ) and an Egg one, the ISA pays 4.75% and the Egg 5.1% which one should I stick my money in? Maybe be a stupid question but I'm asking because do I not pay less tax on my ISA? Which is my best bet, got about £1.1k in my ISA, about £600 of that has been put in this tax year.

grumbler

fatboyonadiet wrote:

...do I not pay less tax on my ISA? Which is my best bet, got about £1.1k in my ISA, about £600 of that has been put in this tax year.

:mad: You don't pay any tax on your ISA as opposit to all other saving accounts for which you pay tax depending on your total annual income (0%/10%/20%/40% - normaly 20%). If you are a tax-payer, your 'best bet' is to put £3K every year into your ISA as well as into your wife's ISA (if you have a wife). If you have a wife and she is not a taxpayer you can keep all savings on her name and avoid paying tax. There is no need in having ISA in this case (depends on future plans though).

And you can transfer your ISA to other provider at anytime. A lot of them offer 5%+ now.

Read articles in the SAVINGS section.

All this looks too obvious for me. Sorry if I misunderstood your question.

Corley

yea jsut stick everything in your isa, use up your yearly allowance then work on another savings acount once your isa is full.

fatboyonadiet

Cheers, that's what I thought, will fill my ISA now and get one in the wife's name, she's a student though, but does work part-time and will be doing a placement year this year too. Best get a better ISA too!