Isa transfer advise please 6 June 2021 at 10:10PM in ISAs & tax-free savings 3 replies 141 views

Missaver

My fixed rate 5 year ISA has come to an end now, and the interest rate falls to 0.05%. 
I have a separate Building Society limited issue online access account which has interest 0.5%.
If I transfer the above ISA money to the online access account, does that mean I lose the benefits of the ISA (or are there any?), as I read that you shouldn't take money out of a cash ISA,,
Is there any need to keep the ISAs these days as all savings are tax free now (and I'm a basic rate taxpayer).

eskbanker

Missaver said:

Is there any need to keep the ISAs these days as all savings are tax free now (and I'm a basic rate taxpayer).

Tax is no longer deducted as a matter of course from savings interest but is still payable for those exceeding their personal savings allowance.

Traditionally the consensus was that the ISA shelter was valuable and worth preserving for cash savings, but the introduction of the personal savings allowance in 2016, coupled with declining interest rates, means that cash ISAs aren't particularly tempting anymore for most - https://blog.moneysavingexpert.com/2016/02/is-it-time-to-ditch-cash-isas-now-that-all-savings-will-be-tax-free/ explains how they might be useful for some though....

kuratowski

And the ISA allowance is now £20k, so if it's not a very large amount then it would be easy to put it back in an ISA later if you wanted to.

xylophone

I have a separate Building Society limited issue online access account which has interest 0.5%.

Which is much of a muchness (possibly better) than standard savings accounts?

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Will the above accept a transfer in?