ISAs vs High Interest Savings Account

eskbanker

Bigwheels1111 said:

friolento said:

Bigwheels1111 said:

Now £200,000 of savings at 4.54%, 4.53% and 4.53% 3 accounts 80k, 80k 40k to stay within FSCS protection of 85k including interest.

Would give interest of,

            £3,632

            £3,624

            £1,812

Total    £9,680 interest.

That would mean you need to pay a little tax.

Use your own pension amount, plus savings amount and do the sums.

https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/

ISA would pay quite a bit less. plus you can only put 20k a year into ISA.

https://moneyfactscompare.co.uk/isa/5-year-fixed-rate-isas/?quick-links-first=false

There are many ISAs that pay more than 4.53% and 4.54%. https://moneyfactscompare.co.uk/isa/

By the 7th of April, OP could get £40k into ISAs. £20k now, and £20K after April 5.

I know that, but 5 year term was mentioned.

But £200K wasn't!

boingy

Definitely put some in to ISAs. It will probably benefit you in future years.

Bigwheels1111

eskbanker said:

Bigwheels1111 said:

friolento said:

Bigwheels1111 said:

Now £200,000 of savings at 4.54%, 4.53% and 4.53% 3 accounts 80k, 80k 40k to stay within FSCS protection of 85k including interest.

Would give interest of,

            £3,632

            £3,624

            £1,812

Total    £9,680 interest.

That would mean you need to pay a little tax.

Use your own pension amount, plus savings amount and do the sums.

https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/

ISA would pay quite a bit less. plus you can only put 20k a year into ISA.

https://moneyfactscompare.co.uk/isa/5-year-fixed-rate-isas/?quick-links-first=false

There are many ISAs that pay more than 4.53% and 4.54%. https://moneyfactscompare.co.uk/isa/

By the 7th of April, OP could get £40k into ISAs. £20k now, and £20K after April 5.

I know that, but 5 year term was mentioned.

But £200K wasn't!

You’re right, but no figure was mentioned.
I could have used £50.
But that would not show an amount liable for tax or not now would it.
So 50k, 100k or so would.
I know as need to work them out for my own finances and tax liability.
ie self assessment return this year as breaching 10k limit for interest.

eskbanker

Bigwheels1111 said:

eskbanker said:

Bigwheels1111 said:

I know that, but 5 year term was mentioned.

But £200K wasn't!

You’re right, but no figure was mentioned.

Except this one:

SusanGlasgow said:

I have around £100,000 to invest...

SusanGlasgow

Thank you all so much for your information.  It has helped me greatly.  Apologies for my remark regarding the £6K.  I had misunderstood.  Everything is so much clearer now. Thanks again for all your help.   

wmb194

The underrated bonus with Isas is that you don't have to worry at all about record keeping.

Veteransaver

Also one other benefit of fixed rate ISAs versus fixed rate non ISAs is that you can still get your money out if you need it. You have to pay a penalty but you can at least access it. 

LHW99

Also, you do have to consider that the interest rate on an ISA, which is untaxed, would have to be equivalent to a slightly higher one (if you have to pay tax on what you receive outside an ISA) to earn the same money amount