isa fixed rate and tax free allowance

jenny45

hi due to get a small tax free lump sum from early pension.  Will use part of it to pay off some stuff but should have 10k to invest.  Can I put it into an isa account or because I got a tax free allowance on the lump sum does this affect it?

Would I be best to put it into a fixed rate saving account for one year and then transfer to isa next year?

thanks

Ayr_Rage

Your pension lump sum and an ISA subscription are not linked IN ANY WAY.

You can invest that lump sum any way you wish as soon as you receive it.

Depending on your income and tax rates a non-ISA fixed rate may get you a better return.

ColdIron

[Deleted User] said:

Can I put it into an isa account or because I got a tax free allowance on the lump sum does this affect it?

Yes you can, it doesn't matter where the money comes from

Do you pay any tax on your savings now? If you don't an ISA may not benefit you

Would I be best to put it into a fixed rate saving account for one year and then transfer to isa next year?

What would be best for one person may not be best for another

You could put it into a one year fixed rate ISA

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

jenny45

thanks everyone