moving from a cash isa to a savings account

onlyme_977

hi i have had a cash ISA for a number of years and currently there arent many decent deals to switch to in terms of transferring to a better rate of interest. Im trying to figure out if its worth taking the money out of my ISA and opening a savings account with a better rate of interest and switching that regularly. Any advice on pro's and cons of doing so? Martin doesnt seem to advise on whether its worth ditching the ISA's. I have less than £15 k in my ISA.

Alexland

On £15k even if you were getting an average rate of 2% then that would still only be £300 pa so within the Personal Savings Allowance for a basic or higher rate taxpayer. However it would be taxable income (even if there is no tax to pay) which might affect eligability for child benefit, etc. Even if interest rates on Cash ISAs went up then you could easily get £15k back into an ISA wrapper within the £20k per tax year contribution allowance.

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