ISAs which will pay monthly income into my current account

Spivved1987

I am looking to find an ISA in which to put some savings, as the amount I have in non-ISA accounts is enough to generate taxable interest. Unfortunately payment of monthly interest into external accounts is not a Key Feature on the comparison sites. So far all the ISAs I've looked at which pay monthly interest merely capitalise it within the ISA itself, which is not what I want. I would be withdrawing money from an existing account (which pays interest into my current account) to fund the ISA.

C_J

Aldermore do this.  I have a three year fixed rate ISA with them which pays the interest into my (different bank) current account.

born_again

Spivved1987 said:

I am looking to find an ISA in which to put some savings, as the amount I have in non-ISA accounts is enough to generate taxable interest. Unfortunately payment of monthly interest into external accounts is not a Key Feature on the comparison sites. So far all the ISAs I've looked at which pay monthly interest merely capitalise it within the ISA itself, which is not what I want. I would be withdrawing money from an existing account (which pays interest into my current account) to fund the ISA.

Your title

ISAs which will pay monthly income into my current account

Your title contradicts the bold in the quote?
So which way is it?

TBH, you do not want to be taking interest out of a ISA, as you are losing the whole point of a ISA, which is tax free interest,

If as the bold in the quote, then just set up a Standing Order to pay X amount into you ISA. But that interest earned in the savings account, transferred to current account will still attract tax.

So better to reduce the amount of savings that will attract tax on the interest & put a fixed amount into a ISA.

Spivved1987

born_again said:

Spivved1987 said:

I am looking to find an ISA in which to put some savings, as the amount I have in non-ISA accounts is enough to generate taxable interest. Unfortunately payment of monthly interest into external accounts is not a Key Feature on the comparison sites. So far all the ISAs I've looked at which pay monthly interest merely capitalise it within the ISA itself, which is not what I want. I would be withdrawing money from an existing account (which pays interest into my current account) to fund the ISA.

Your title

ISAs which will pay monthly income into my current account

Your title contradicts the bold in the quote?
So which way is it?

TBH, you do not want to be taking interest out of a ISA, as you are losing the whole point of a ISA, which is tax free interest,

If as the bold in the quote, then just set up a Standing Order to pay X amount into you ISA. But that interest earned in the savings account, transferred to current account will still attract tax.

So better to reduce the amount of savings that will attract tax on the interest & put a fixed amount into a ISA.

Read the post from CJ above. He didn't get where he is today by making up stuff.

JGB1955

My ISAs with Charter Bank and Paragon both pay interest monthly into my current account.  On the comparison sites look for 'monthly interest paid away' as a filter.

MrsCautious

I no longer have an ISA with Virgin but when I did I got monthly interest so it may be worth researching. 

amanda1024

I previously had a Barclays ISA that let me pay the monthly interest into my current account 

Spivved1987

amanda1024 said:

I previously had a Barclays ISA that let me pay the monthly interest into my current account 

Was your current account with Barclays?

amanda1024

Spivved1987 said:

amanda1024 said:

I previously had a Barclays ISA that let me pay the monthly interest into my current account 

Was your current account with Barclays?

yes - not sure if that makes a difference

Spivved1987

amanda1024 said:

Spivved1987 said:

amanda1024 said:

I previously had a Barclays ISA that let me pay the monthly interest into my current account 

Was your current account with Barclays?

yes - not sure if that makes a difference

I have been unable to find an ISA which will pay interest monthly into a current account unless your current account is also with the provider.

Oh well, I guess I'll just carry on taking the hit, and hope that at some stage the government will increase the Personal Savings Allowance*

*Joke. The PSA will never be increased, and will merely become another example of 'fiscal drag' along with the 44p a mile car allowance (unchanged since 2011) and the £30,000 tax free element of redundancy lump sums (last changed God knows when, but possibly the early 1990s)

BrassicWoman

Try Shawbrook - their fixed ISA pays interest to my current account.