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£31k in HSBC Online Bonus Savings. Should I move to an ISA?
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I'm a complete newbie when it comes to money stuff, so even the MSE articles don't make sense to me.
Should someone with £31k in an HSBC Online Bonus Savings Account (4.00% AER) be moving to an ISA?
I get around £50 each month in gross interest + a further £50 as an added amount, if untouched that month. Sometimes I like to add a few hundred in.0 -
An ISA means you will not have to pay tax on any interest received, so it depends on what your income tax situation is. Ie do you pay income tax, and at what rate?MarcJ88 said:I'm a complete newbie when it comes to money stuff, so even the MSE articles don't make sense to me.
Should someone with £31k in an HSBC Online Bonus Savings Account (4.00% AER) be moving to an ISA?
I get around £50 each month in gross interest + a further £50 as an added amount, if untouched that month. Sometimes I like to add a few hundred in.
However, you can get 5.00% (vs your 4.00%) with some ISAs (and some easy access savings accounts), so from that point of view, it could be worth it.
You can only put £20k per tax year into a cash ISA, so if you want to go that route with your £31k, open an ISA now and put £20k in it and then deposit the rest on Saturday (first day of new tax year).
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Thanks Suzey.Suzey said:
An ISA means you will not have to pay tax on any interest received, so it depends on what your income tax situation is. Ie do you pay income tax, and at what rate?MarcJ88 said:I'm a complete newbie when it comes to money stuff, so even the MSE articles don't make sense to me.
Should someone with £31k in an HSBC Online Bonus Savings Account (4.00% AER) be moving to an ISA?
I get around £50 each month in gross interest + a further £50 as an added amount, if untouched that month. Sometimes I like to add a few hundred in.
However, you can get 5.00% (vs your 4.00%) with some ISAs (and some easy access savings accounts), so from that point of view, it could be worth it.
You can only put £20k per tax year into a cash ISA, so if you want to go that route with your £31k, open an ISA now and put £20k in it and then deposit the rest on Saturday (first day of new tax year).
Yes I pay income tax, think it's a low rate because the salary is below £30k.0
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