Best way to maximise interest income

Bigwheels1111

MartusJK said:

Sorry for late response and thanks for all the answers. Sorry but another basic question, can you take out an ISA at any time or does it have to be at the start of a tax year i.e. 1st April??

You can now have more than 1 isa in a year, but only put a max of 20k in them in total.

I use Trading212 as for me it has the best rate, I also use Chip's isa.

Trading212 state up to 3 business day to transfer money.

So far its been instant. Just in case I move the cash to chip 3 day early.

Then to my bank on the first to pay my regular savers ( 15 ) at present.

This way I get at least 4.58% - 10% interest.

wmb194

MartusJK said:

Sorry for late response and thanks for all the answers. Sorry but another basic question, can you take out an ISA at any time or does it have to be at the start of a tax year i.e. 1st April??

Tax years always run from 06/04 to 05/04.

allegro120

MartusJK said:

Hi there, hopefully a fairly simple one I hope you can help with please, my partner has about £30K of savings and wants to keep it easy access, so It seems currently best returns about 4.5 - 5% interest meaning, if my basic maths is right, at least £1350 interest a year and therefore £350 over the tax threshold. So my basic question is to avoid paying tax on that is the simple solution to put £20K of it into a tax free (annual?) ISA and then the interest from the remaining £10K wont breach the £1K tax threshold? Or is this being too simplistic? I know the amounts involved here are relatively small but as a certain supermaket says every bit helps! Many thanks for your consideration.

Yes, £20k into best paying ISA and £10k into best paying easy access sounds like the best decision.  

MartusJK

ok hopefully the final basic question, so with these flexible ISAs like the latest 5.1% trading212 12 month ISA, can you deposit and withdraw any number of different amounts unlimited times? Their wording is a just a bit ambiguous "This means you can withdraw any amount and deposit it back without impacting your allowance, as long as you do it within the same tax year" suggesting you might have to deposit back exactly the same amount you took out but hopefully thats not what they meant??

winkowinko

The 12 month bit only applies to the 0.2% bonus on top of the variable rate. ie you'll only get that 0.2% extra for 12 months.

As for withdrawals and deposits, you could withdraw £100 today, then deposit £50 tomorrow. The amount doesn't need to match the previous transaction.

As long as you're not depositing more than £20k of new money per tax year, you can withdraw and replenish as you wish.

badger09

But you must replace any money withdrawn in a tax year, by the end of that same tax year. If, for example, you withdraw £19k in total but have replaced only £16k by 5th April, you lose the ability to replace £3k. 

This applies to all Flexible ISAs.