Savings or ISA

Puzzledone

Hi
i have a savings account and don’t earn enough interest to pay tax on it. I do on my pensions though (basic rate). Can I put this money into an ISA instead as the rates are better?
thanks

Middle_of_the_Road

Puzzledone said:

Hi
i have a savings account and don’t earn enough interest to pay tax on it. I do on my pensions though (basic rate). Can I put this money into an ISA instead as the rates are better?
thanks

You can, but would advise that you familiarise yourself with the ISA rules, so you understand how the different types operate.

https://www.moneysavingexpert.com/savings/best-cash-isa/

clairec666

If you don't have enough savings to pay tax on interest (rough guide - £20,000 at 5% interest will take you to the £1000 threshold) then it doesn't matter whether you choose an ISA or another savings account. You can just choose the account with the best interest rate.

Bigwheels1111

Puzzledone said:

Hi
i have a savings account and don’t earn enough interest to pay tax on it. I do on my pensions though (basic rate). Can I put this money into an ISA instead as the rates are better?
thanks

Keep it simple.

Do your pensions and or any benefits you get ( Just added this for others ) add up to £18,570 or less.

Start with £18,570 in your figures and take away pensions total.

£18,570 - Pension say £16,000 = £2,570 of interest you can get tax free.

£12,570 Tax free income, made up from Working, Pensions, Benefits or interest.

£ 5,000  Starter savings rate. Any taxable income into the £5k is deducted from it.

£ 1,000 Personal savings allowance tax free.

As for ISA etc, just get the best rate you can, ISA or standard savings.

Albermarle

Savings | MoneySavingExpert

Suggest you read through this.