Savings account

phantomtraveller1

Good evening. A family member has a substantial amount in a bank account. Should a substantial proportion, be put into an isa. Or is this at risk of the government taxing it? Do not want investments. Just dont want to lose any of it. Thanks in anticipation.

eskbanker

phantomtraveller1 said:

Good evening. A family member has a substantial amount in a bank account. Should a substantial proportion, be put into an isa. Or is this at risk of the government taxing it? Do not want investments. Just dont want to lose any of it. Thanks in anticipation.

ISAs aren't the be all and end all - they do offer a shelter from taxation but most people don't have enough in savings to earn sufficient interest to incur tax anyway, and non-ISA savings accounts may give a better net return.

Much will depend on what 'substantial' actually denotes here, together with what this person has in mind for the money, in terms of when it'll be needed, etc - do they have anyone knowledgeable who can advise them?

phantomtraveller1

In answer to first 30,000+, second, needed for security and backup. went to bank and was advised isa. 

FrugaiMacDugal

phantomtraveller1 said:

 Should a substantial proportion, be put into an isa. Or is this at risk of the government taxing it?

There is no tax payable on ISA interest.

Ayr_Rage

phantomtraveller1 said:

Good evening. A family member has a substantial amount in a bank account. Should a substantial proportion, be put into an isa. Or is this at risk of the government taxing it? Do not want investments. Just dont want to lose any of it. Thanks in anticipation.

What income, from work or other sources, does this person have and do they pay tax?

If so, what is their marginal rate?

A cash ISA may not always give the best return although the interest will always be free of tax.

Albermarle

Suggest you have a good read through this.
Savings - All Guides - MoneySavingExpert

Cisco001

If he/she hasn't use the allowance this year, open an cash ISA asap to utilize 24/25 allowance

jimjames

phantomtraveller1 said:

In answer to first 30,000+, second, needed for security and backup. went to bank and was advised isa. 

The ISA allowance is £20k pa so unless they put at least £10k in before 6 April they'll have to wait until 2026 to get it all in an ISA. But if it's not in an ISA now what is the sudden urgency?