Another tax on savings question pls
in Savings & investments
11 replies 772 views
I've been trying to get my head round this today. I'm higher rate tax payer, so I believe this means I will pay 40% on any interest over £500. I am nearly at this limit.
I opened a HSBC investment account out of curiosity early in the year which has a couple of hundred pounds in, but I haven't really used it. Alongside the investment account, HSBC asks you to open an ISA for uninvested cash, which pays 0% interest. Normally this wouldn't be an issue but after watching Martin's video today, I'm now thinking that I should put some of my savings into a cash ISA to save paying tax. However, does the fact that I have the uninvested cash ISA (and have paid into it this year) mean that I won't be able to open a normal cash ISA?
If I can transfer to another cash ISA, will I be able to pay into it? Even if its the HSBC one which pays 1.4%, it's better than nothing. My plan would be to transfer £16k of savings (I have used £4k on my Lifetime ISA) and then I just pay tax on the rest. I tried to call HSBC today but gave up after an hour on hold. Any advice would be appreciated please. Savings are for a house deposit.
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