Working out Personal Allowance?

Noneforit999 Forumite Posts: 596
Fifth Anniversary 500 Posts Name Dropper Combo Breaker

My wife earns £16800pa as she is part time.

Can someone check I have worked this out right as it will dictate whether we need an ISA or can get away with a normal savings account.

£16800 minus £5000 starting rate is £4050 leaving £950.

£1000 personal allowance plus the £950 means she can earn £1950 in interest before paying tax?

She has about £45k in savings, half of which is locked into the remainder of a 1 year deal at 4% and the rest is in an easy access at 3.8% so trying to work out what to do with £20k. 


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