Is a cash isa generally in line with a variable savings account?

pw23

As i have £75k in savings which is currently in a variable savings account iwas thinking of moving 20k now into a cash isa to prevent eventually needing to pay capital gains tax plus going over the £85k protection 

but generally speaking do cash isa rates match or come close to the best variable rate savings accounts?


on a separate note, if there is little difference i will take 20k out of my variable account tomorrow but'do you think its too late now to get it back in my current account then into a fresh cash isa account before the start of the new tax year?

xylophone

 into a cash isa to prevent eventually needing to pay capital gains tax 

Do you mean tax on interest? CGT  is not the same thing.

https://www.gov.uk/capital-gains-tax

With regard to ISA/non ISA rates

you can compare by consulting the tables here.

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

do you think its too late now to get it back in my current account then into a fresh cash isa account before the start of the new tax year?

It would depend on how quickly you could open the ISA, transfer the savings to current account and then fund the ISA.

TheBanker

pw23 said:

on a separate note, if there is little difference i will take 20k out of my variable account tomorrow but'do you think its too late now to get it back in my current account then into a fresh cash isa account before the start of the new tax year?

Do you already have a 2022/3 ISA? If not, then it might be quicker to open one with your savings account provider and transfer the money directly, if they offer ISAs and allow this. Or with your current account provider if you can get the money back to them. Using an existing provider will should speed up account opening as they shouldn't need to complete as many AML checks, and also eliminates at least one Faster Payment.

Even if it's not the best rate, don't worry, you can transfer it to a better ISA once it's open. The key is to get the £20k within an ISA wrapper within the next three days, regardless of the rate. 

Albermarle

but generally speaking do cash isa rates match or come close to the best variable rate savings accounts?

You can have many different types of cash ISA, such as different fixed terms.

So what you really mean is how does an easy access Cash ISA compare to an easy access normal savings account. Both with variable rates.

In this case the cash ISA will normally have a lower interest rate. However currently the gap is quite small, so you would save more in tax by having an ISA, than you would lose in interest by having a lower rate. However at other times the gap has been bigger and the situation reversed.

Similar thread here.

ISA or not to ISA — MoneySavingExpert Forum