Is now a good time to open a new Cash ISA or should I wait until April?

Dellphillius

Albermarle said:

I'm just a bit unclear on the tax side of things

There are numerous threads/questions/answers on this subject on this, and the main Savings and Investments board. So maybe worth spending some time scrolling through them. Plus
What is the personal savings allowance? (moneysavingexpert.com)
Tax-free savings: check if you're eligible - Money Saving Expert

Thanks for the links, I'll give them a read.

Reed_Richards

If you are near the FSCS limit I assume you have about £80k in your ISA.  Invested at an interest rate of 3% p.a. that would bring in £2400 per year.  That's a sufficiently large sum that you are quite likely to have to pay income tax on some of it, if it was outside the protection of an ISA.  You need to factor income tax in when investigating non-ISA savings accounts.

On the other hand, you might be able to find a regular saver account that offers a particularly good rate of interest for a year, although you are unlikely to be able to deposit as much a £500 per month into that type of account.     

Dellphillius

Reed_Richards said:

If you are near the FSCS limit I assume you have about £80k in your ISA.  Invested at an interest rate of 3% p.a. that would bring in £2400 per year.  That's a sufficiently large sum that you are quite likely to have to pay income tax on some of it, if it was outside the protection of an ISA.  You need to factor income tax in when investigating non-ISA savings accounts.

On the other hand, you might be able to find a regular saver account that offers a particularly good rate of interest for a year, although you are unlikely to be able to deposit as much a £500 per month into that type of account.     

Thanks for your comment. The tax issue on regular savings accounts was something I was unsure about. I think the best bet is to stick with a regular ISA so I don't exceed my allowance.