how to use 20k isa allowance

Qyburn

Nosmo_King_2 said:

Qyburn said:

If you're not sure, go for the best easy access cash ISA thst you can find, in order to secure this year's allowance. Then you'll be free to transfer if you decide to go for investment or fixed term or anything at any time in the future. You can transfer a cash ISA into a stocks and shares ISA, just in case you weren't aware.

Isn't there the potential for charges for early withdrawal/transfer?

Not if you open an easy access cash ISA. Even if it limits number of withdrawals per year that won't penalise a transfer out.

twadds123

not sure why you would open a virgin isa @5.06% with some restrictions when you can open a chip flexible cash isa at 5.1%

maybe someone with more knowledge could explain any benefit of the virgin one?

seems like the chip one is higher rate with no issues?

Apart from you can't transfer in to the chip one i guess.

masonic

twadds123 said:

maybe someone with more knowledge could explain any benefit of the virgin one?

One benefit is that you could open now and choose whether or not to fund in 2024/25. Useful if you have used your full allowance in this tax year or have already subscribed to another cash ISA. Since it is unclear whether rates will hold over the next month or so. Chip requires an opening deposit so can't be opened in advance for the next tax year.