Confusion over tax on savings

vikkimcd

I am really confusing things sorry!
I mean:
£20k in an ISA this week.
£20k in an ISA when new tax year starts next month.
Then I will have about another £18k to put somewhere until the next tax year opens in April 2026 (so will need to put this somewhere in the meantime).
I would ideally like to put it all somewhere and leave it.

eskbanker

vikkimcd said:

Ah, so fixed rate ones are preferable?

Not necessarily, it's entirely personal choice - some will prefer the certainty of knowing exactly how much interest they'll earn, but others will want the option of accessing funds without penalty, while others will essentially be taking a punt on whether fixed or variable will be more lucrative over the term, which is basically guesswork, given that nobody knows which way rates will go.

vikkimcd

So for someone who just wants to put it somewhere and leave it?
Also, should I go for just a high interest savings account for the £18k?

slinger2

Don't know your tax situation but basic rate taxpayers can get £1K interest without paying tax. Interest on £18k will be less than £1k so can't the £18k go in a non-ISA savings account.

vikkimcd

Hi. Yes, that is what I am thinking of - so just a normal bank savings account? 
Can I just check - can I add £20k to an already £20k ISA from the year before? i.e. I will put £20k in now, then £20k in in April of this year - does this go into the same account, to add to £40k (over two tax years), or do I open a separate account where the two £20k sit separately?

Dazed_and_C0nfused

vikkimcd said:

Hi. Yes, that is what I am thinking of - so just a normal bank savings account? 
Can I just check - can I add £20k to an already £20k ISA from the year before? i.e. I will put £20k in now, then £20k in in April of this year - does this go into the same account, to add to £40k (over two tax years), or do I open a separate account where the two £20k sit separately?

As previous explained that will depend on the rules of the first ISA you open.

It might have a funding window which you can only add money in say the first 10 days it is open.

You need to pick an ISA which meets your needs.  If you want one that lets you put in £20k pre 6 April and £20k post 5 April then there will be one that allows that.  

But it might not be with your preferred provider or have the best rate.

You need to find the account.  Or accounts.  That are right for you 

vikkimcd

Ah, I get you. I thought this referred to something else. Thanks very much for the help again.

vikkimcd

Incidentally, there is mention of a fee in the Ts and Cs - it looks to be if dealing with stocks and shares, but is it normal to be charged a monthly fee?

Dazed_and_C0nfused

vikkimcd said:

Incidentally, there is mention of a fee in the Ts and Cs - it looks to be if dealing with stocks and shares, but is it normal to be charged a monthly fee?

Not for a Cash ISA no.  But quite normal for a S&S ISA.

Have you considered picking a strategy and sticking to it 🤔

20122013

Hi vikkimcd. I cannot see the full name of ISA mentioned here or on the MSE site. As there are other savings accounts, which have the same abbreviations which are not a tax free. I won't name it, to avoid confusion.

Can someone write the full name for the ISA that is tax free, please.