ISA

MARKM7962

Hi

I have a decent amount of savings which we are not touching. Can you explain the benefits of an ISA as I'm reading that you can get a good return over a twelve month period or even longer 

jimjames

An ISA means you don't have to pay tax on any interest earned. If you're not paying tax on the interest anyway then it's not really of any benefit. An ISA is just a savings account so look for the best rate regardless of ISA or not.

If you have a look around on the ISA sub board you'll find lots more info about them

Sg28

Depending on your circumstances you may not pay tax on interest anyway making an ISA pointless.

Are you a taxpayer? Basic rate? Higher rate? 

eskbanker

MARKM7962 said:

I have a decent amount of savings which we are not touching. Can you explain the benefits of an ISA as I'm reading that you can get a good return over a twelve month period or even longer 

'Not touching' and 'even longer' could signify various different scenarios, but if it's money that you're likely to need to access within, say, five years, then keeping it in cash deposit form is likely to be worthwhile, whether within the ISA tax shelter or outside that.

However, if the money can be locked away for longer, then using an S&S ISA is probably worth considering, or ultimately even a pension, so the best solution will depend on your anticipated timescales....

friolento

Useful information: https://www.moneysavingexpert.com/savings/isa-guide-savings-without-tax/

And also https://forums.moneysavingexpert.com/categories/isas-tax-free-savings

Bigwheels1111

Closed my ISA'S last year as not going to pay tax on savings and got better rates via fixed rates.

Then opened an ISA in November and July this year.

Both give access at a fair price.

Do not need the money, buy in an emergency I can get it.

Pizza_the_Action

Sg28 said:

Depending on your circumstances you may not pay tax on interest anyway making an ISA pointless.

Are you a taxpayer? Basic rate? Higher rate? 

If you are not a tax payer (in my case due to seafarer’s exemption) what does this mean for having an ISA and the interest earned? 

jimjames

Pizza_the_Action said:

Sg28 said:

Depending on your circumstances you may not pay tax on interest anyway making an ISA pointless.

Are you a taxpayer? Basic rate? Higher rate? 

If you are not a tax payer (in my case due to seafarer’s exemption) what does this mean for having an ISA and the interest earned? 

It means there is no current benefit to having the ISA vs non ISA savings account. Note the word current, if the tax allowances change in future then the ISA might be beneficial