Investing home equity until we buy again.

slinger2

mksysb said:

anewloginapparently said:

If I put £20k in a cash ISA & £35k in a standard savings account this should hopefully keep me under the £1k interest limit for the savings account?

Why is everyone so fixated about the £1k limit?  Better to earn as much as possible.  £100 over the limit would be £20 tax so you would be £80 better off than than trying to keep below the limit.

But why not go for a cash iSA and get all the interest, not 80% of it.

mksysb

slinger2 said:

mksysb said:

anewloginapparently said:

If I put £20k in a cash ISA & £35k in a standard savings account this should hopefully keep me under the £1k interest limit for the savings account?

Why is everyone so fixated about the £1k limit?  Better to earn as much as possible.  £100 over the limit would be £20 tax so you would be £80 better off than than trying to keep below the limit.

But why not go for a cash iSA and get all the interest, not 80% of it.

obviously, that's a given, but we are talking about the remainder.

wmb194

mksysb said:

slinger2 said:

mksysb said:

anewloginapparently said:

If I put £20k in a cash ISA & £35k in a standard savings account this should hopefully keep me under the £1k interest limit for the savings account?

Why is everyone so fixated about the £1k limit?  Better to earn as much as possible.  £100 over the limit would be £20 tax so you would be £80 better off than than trying to keep below the limit.

But why not go for a cash iSA and get all the interest, not 80% of it.

obviously, that's a given, but we are talking about the remainder.

Some people want to avoid dealing with HMRC - particularly being dragged into SA - and/or having their tax code constantly fiddled with.

slinger2

mksysb said:

slinger2 said:

mksysb said:

anewloginapparently said:

If I put £20k in a cash ISA & £35k in a standard savings account this should hopefully keep me under the £1k interest limit for the savings account?

Why is everyone so fixated about the £1k limit?  Better to earn as much as possible.  £100 over the limit would be £20 tax so you would be £80 better off than than trying to keep below the limit.

But why not go for a cash iSA and get all the interest, not 80% of it.

obviously, that's a given, but we are talking about the remainder.

Still struggling to understand your point. As noted above, with £55k invested for 6 months, you'll get more than £1k interest. As such, a Cash ISA (where you get 100% of the interest) might well make more sense for some of your money, than a non-ISA where you only get 80% of some the interest. This is just common sense, nothing to do with being "fixated": 100% of 4.5% is more than 80% of 5%.

InvesterJones

slinger2 said:

mksysb said:

slinger2 said:

mksysb said:

anewloginapparently said:

If I put £20k in a cash ISA & £35k in a standard savings account this should hopefully keep me under the £1k interest limit for the savings account?

Why is everyone so fixated about the £1k limit?  Better to earn as much as possible.  £100 over the limit would be £20 tax so you would be £80 better off than than trying to keep below the limit.

But why not go for a cash iSA and get all the interest, not 80% of it.

obviously, that's a given, but we are talking about the remainder.

Still struggling to understand your point. As noted above, with £55k invested for 6 months, you'll get more than £1k interest. As such, a Cash ISA (where you get 100% of the interest) might well make more sense for some of your money, than a non-ISA where you only get 80% of some the interest. This is just common sense, nothing to do with being "fixated": 100% of 4.5% is more than 80% of 5%.

I think everyone is talking about the same thing - the remaining £35k after £20k is in an ISA. For that remainder the interest earned may still be taxable as it could go over allowance, but the point being made is that's not the end of the world - having some of more is still more. No likely worries about having to fill in tax return, and tax code changes are done for you so you even get a few years interest free on the amount owed.

FIREmenow

In terms of easy access, you need to open a current account first, but Ulster Loyalty is 5.2% and they give 60 days notice if they reduce the rate.