ISA/ Savings drip feed/ plan help?

fcpanda

Hi all,

I have the majority of my savings in a Chase account earning 4.1% and the rest in an ISA earning 5.1%.
I haven't used any of my ISA allowance for 2024/25.

I was wondering how you suggest movement of funds to avoid hitting the PSA? I can't max out the ISA straight away as use funds from the Chase savings account for my self employment so always need circa 10k readily available.

Would you fill the ISA to the amount that means you wouldn't go over the PSA from savings and anything extra is bonus?

TIA

eskbanker

It'll generally be best to focus on maximising net return, rather than to try to avoid paying tax, but beyond your requirement to have easy access to £10K, you don't clarify how much you're talking about?  Is the existing ISA easy access and/or flexible?

fcpanda

eskbanker said:

It'll generally be best to focus on maximising net return, rather than to try to avoid paying tax, but beyond your requirement to have easy access to £10K, you don't clarify how much you're talking about?  Is the existing ISA easy access and/or flexible?

It is easy access and allows 4 penalty free withdrawals without the rate dropping (Moneybox).

Currently £35k in savings and 21k in ISA

eskbanker

fcpanda said:

eskbanker said:

It'll generally be best to focus on maximising net return, rather than to try to avoid paying tax, but beyond your requirement to have easy access to £10K, you don't clarify how much you're talking about?  Is the existing ISA easy access and/or flexible?

It is easy access and allows 4 penalty free withdrawals without the rate dropping (Moneybox).

Currently £35k in savings and 21k in ISA

Why not pay £20K into one of the best-paying easy-access cash ISAs then?

https://www.moneysavingexpert.com/savings/best-cash-isa/#topeasy

Bigwheels1111

Go with Chip, 5.1% easy access isa.
Near instant deposits and withdraws.
Stick your self employment 10k in there.
Plus 10k from savings.
The best thing is you can top it up after withdrawals as long as you don’t go over 20k.
Interest over the 20k is ok.