First ISA - Best Options?

neogeo

Hi,
I have historically been pretty lax with smart saving but did open the Santander High Interest savings account last year. I deposited immediately and have reached my tax-free interest allowance on savings accounts (40% tax payer).
I understand I can also utilise the ISA tax free allowance so am looking to transfer the savings from that account and opening a first ISA.
I will put the maximum £20K into it.
Are there any better investment suggestions? I'm keen on the cash ISA options, but really have no idea what to look for other than the highest rate ones. I would likely need the cash back in 1 year.
Stocks & Shares ISAs - are these possibly more geared towards longer term investments?
Any other advice/suggestions welcome.
Thank you!

ColdIron

If you pay 40% tax an ISA makes a lot of sense for savings. Highest rate is a good metric and so is whether it's easy access or fixed term/rate.

A Stocks & Shares ISA is a different kettle of fish and unsuitable if you need the cash in a year

Premium Bonds and pension might be an option but I'd look at ISAs first if you are just looking to minimise tax on your savings

NB The new tax year is two weeks away so I'd get a move on if you want to put more than £20,000 away

gravel_2

S&S ISA better suited to longer time horizon unless you understand and are comfortable with bonds or money market funds. Some do now offer "interest" on cash held on the platform (5.2% on Trading212) but you can look for threads on that to understand it better.

If you know 100% you won't need the money for a year then just pick the top % 1 year fixed. You can pick and chose the bank/institution if you would feel more comfortable with a known brand. However, all will be fully FSCS protected for your amount of savings, If you are uncertain when you need the money then an easy access (either with some permitted withdrawals or entirely flexible) will be fine but you will suffer from rate drops if the Bank of England rate goes down as these are all variable interest rates.

If you have more than £20k to save right now you should be able to open an ISA NOW (before 6 April) and then be able to deposit £20k this tax year and up to a further £20k from 6 April.

In any event before you withdraw from an ISA in the future I'd recommend shifting the money to a flexible ISA as this gives you the opportunity to build that ISA back up to the same value within the same tax year if you are able to without being limited to the £20k limit.

neogeo

Thanks for the responses.
I will just look for the top paying 1 year fixed.
Lastly, I see very odd names when looking for top ISA providers - Plum, Moneybox, Chip...never heard of any of these.
Are these all going to be legit - do I need to do any further research (they all appear on respected advice websites etc...)?

ColdIron

There are many ISA providers these days and they are often better than high street banks. As long as they are regulated by the FCA and covered by the FSCS you are fine. Any provider mentioned on MSE or Moneyfactscompare will have these protections. Don't click on Facebook adverts

Virgin have the best 1 year fix at the moment

xylophone

Virgin has the best 1 year fix but only for current account customers.

Otherwise see

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

neogeo

Opened up a Virgin Current Account, waited 3 days to get it registered for other banks to see...now their ISA looks like its been pulled! 

TheEmerald

I think their ISA was withdrawn yesterday because I tried repeatedly to open one but the page was not available.
Not really sure who to go with now but definitely want a fixed ISA.