Saving advice

Johnny-Cage

I had this years ISA maxed out at T212.
I’ve had to pull out almost 8k to use towards a replacement car.

I currently now have 12k in T212 ISA but I’ve also been saving in a Club Lloyds RS at £400pm now at 2k.
Am I best keeping The RS going and close it just before the end of the tax year and transfer what’s will be 4k back in to the ISA, I should be back to the 20k with other deposits.

or just close the RS and put the balance in the ISA now 

InvesterJones

What kind of ISA? Flexible cash ISA? Do you pay tax on interest outside of an ISA?

If no tax to pay, then keep the money where the interest rate is highest, making sure to move it back if elsewhere to maximise contributions before a new tax year.

eskbanker

As the regular saver pays a higher interest rate, without withdrawal penalties, then it'll make sense to keep the money in there as long as possible, provided that you have enough headroom to avoid paying tax on the interest.

Johnny-Cage

eskbanker said:

As the regular saver pays a higher interest rate, without withdrawal penalties, then it'll make sense to keep the money in there as long as possible, provided that you have enough headroom to avoid paying tax on the interest.

That was my way of thinking, keep the £400 pm going then 1st April transfer everything in to the ISA or whatever is needed to get to the 20k limit 

Johnny-Cage

InvesterJones said:

What kind of ISA? Flexible cash ISA? Do you pay tax on interest outside of an ISA?

If no tax to pay, then keep the money where the interest rate is highest, making sure to move it back if elsewhere to maximise contributions before a new tax year.

Yh it’s a flexible T212 cash ISA and I don’t really pay much interest all other savings in previous years ISA’s