Confusion over tax on savings

vikkimcd

No, I just want to put it away somewhere for now, till later in the future. I've read all of the MSE stuff, but it doesn't cover everything. If I get a separate account for the rest, I don't know where I'd put that.

eskbanker

vikkimcd said:

I've read all of the MSE stuff, but it doesn't cover everything.

Out of curiosity, what do you feel it's missing?

vikkimcd

I have picked my first place to put the £20k for this year. Am I able to just add another £20k to the same ISA when the new tax year starts in April? Or do I have to have a separate account for the second £20k?

Dazed_and_C0nfused

vikkimcd said:

I have picked my first place to put the £20k for this year. Am I able to just add another £20k to the same ISA when the new tax year starts in April? Or do I have to have a separate account for the second £20k?

That will depend on the terms of the ISA you open now.  Some have limited funding windows.

eskbanker

vikkimcd said:

I have picked my first place to put the £20k for this year. Am I able to just add another £20k to the same ISA when the new tax year starts in April? Or do I have to have a separate account for the second £20k?

You can choose to continue to fund the same account, provided you're not outside any product-specific initial funding window - most fixed rate/term products will only allow deposits for the first 14/30 days after opening, for example.

vikkimcd

So it is more common to have £20k in separate accounts or companies? Also, the rate will change after 12 months, so I guess I will need to transfer it after that.

eskbanker

vikkimcd said:

So it is more common to have £20k in separate accounts or companies?

Horses for courses, it's up to you, according to your own requirements and preferences.

vikkimcd said:

Also, the rate will change after 12 months, so I guess I will need to transfer it after that.

If you have a one year fixed rate product then you'll be given options at maturity, one of which will be to transfer to another provider or product.  You need to pay attention to what happens if you don't make an informed choice, as some products have been known to roll over into another fix of the same duration, which may not be financially attractive, although most will simply convert into (poorly-paying) easy access products....

vikkimcd

Do you have any recommendations as to what I could do with the other approx. £18k until 2027? 

eskbanker

vikkimcd said:

Do you have any recommendations as to what I could do with the other approx. £18k until 2027? 

No personal recommendations in terms of recent experience, but if I was in the market for an ISA for two years I'd go to the MSE or Moneyfacts listings and pick the two year one with the best interest rate, but others may be swayed more by high street names, or review sites, or whatever.  Sticking to easy access is another option if fixing a rate isn't important to you....

vikkimcd

Ah, so fixed rate ones are preferable? I (hopefully) will be leaving it where it is, that's what I want to do anyway. (Sorry, I said 2027, as I will have already put in £20k this year and £20k in April, so the rest I can't put in until April 2026. I meant 2026).