Best rate

horsewithnoname

I think I’m correct in that 4.76% in an ISA is better than 5.1% and paying basic rate tax. 

Unless it’s not as simple as I think, ie that I’d end up with .8 x 5.1 after tax. 

Thanks

eskbanker

If all of the 5.1% interest would be subject to tax, by virtue of having exhausted all allowances and nil-rate bands, then yes, 4.76% is better than 80% of 5.1%.

ColdIron

Yes it is but have you factored in your £500/£1,000 personal savings allowance?

horsewithnoname

Yes that’s the position. Thanks, I thought it was, but then I thought perhaps it was too easy so just thought I’d check 😁

horsewithnoname

ColdIron said:

Yes it is but have you factored in your £500/£1,000 personal savings allowance?

Yes I have. For one year only I have exceeded the allowance 😯

eskbanker

horsewithnoname said:

ColdIron said:

Yes it is but have you factored in your £500/£1,000 personal savings allowance?

Yes I have. For one year only I have exceeded the allowance 😯

Is it viable to use a (non-ISA) fixed term product that pays interest in the next tax year?

horsewithnoname

eskbanker said:

horsewithnoname said:

ColdIron said:

Yes it is but have you factored in your £500/£1,000 personal savings allowance?

Yes I have. For one year only I have exceeded the allowance 😯

Is it viable to use a (non-ISA) fixed term product that pays interest in the next tax year?

It would, but the bulk of the money is now spent, and the bit I’ve got I’ve put in my ISA as I’ve plenty of leeway now, and it’s really not worth faffing over. Just may as well have it in the best place and as the Virgin money 10% account seems not to pay annually I’m just minimising my tax bill and maximising my interest but it’s not that big a deal 😁