We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Flexi to Easy Access savings account
Options

20122013
Posts: 470 Forumite

I have some money in a Flexi Cash ISA earning 3.63% (variable), if I leave the minimum balance and withdraw the rest to open a new higher interest rate 5% variable account with CHASE.
and then pay this money back into my Flexi CASH ISA before 5/4/26. Will the interest I earn outweighs the tax I have to pay?
Some of CHASE TC's :
'You can only withdraw from the account by transferring funds to other
accounts held with us or other UK banks. You can make as many
withdrawals as you like with no penalties.'
' The current interest rate applicable can be found in the app or on our website (or you can contact us). Interest is paid on the first calendar day of the month and is calculated on a daily basis.)https://www.chase.co.uk/gb/en/legal/chase-saver-account-terms-and-conditions/
0
Comments
-
eskbanker said:What would be the effective marginal rate of tax payable on the income?At the moment I have no income so I am on a basic tax rate. I will be a higher tax rate payer, when the sale of my property is completed, I still think I should go with my plan in my OP. I would like to be able to work out the calculations for the interest rate and also CGT.
0 -
20122013 said:eskbanker said:What would be the effective marginal rate of tax payable on the income?At the moment I have no income so I am on a basic tax rate. I will be a higher tax rate payer, when the sale of my property is completed, I still think I should go with my plan in my OP. I would like to be able to work out the calculations for the interest rate and also CGT.0
-
20122013 said:eskbanker said:What would be the effective marginal rate of tax payable on the income?At the moment I have no income so I am on a basic tax rate. I will be a higher tax rate payer, when the sale of my property is completed, I still think I should go with my plan in my OP. I would like to be able to work out the calculations for the interest rate and also CGT.
The CGT calculation is obviously an entirely different question but doesn't affect your income tax liability - it isn't clear how selling a BTL property would result in you becoming a higher rate taxpayer, are those unrelated?0 -
eskbanker said:20122013 said:eskbanker said:What would be the effective marginal rate of tax payable on the income?At the moment I have no income so I am on a basic tax rate. I will be a higher tax rate payer, when the sale of my property is completed, I still think I should go with my plan in my OP. I would like to be able to work out the calculations for the interest rate and also CGT.
The CGT calculation is obviously an entirely different question but doesn't affect your income tax liability - it isn't clear how selling a BTL property would result in you becoming a higher rate taxpayer, are those unrelated?I have some money in my Flexi ISA Account and was trying again to transfer some of it out to YBS Flexi ISA and 6 weeks in I still get the same error ie cannot do the transter at this time. So I will withdraw most of it and put into Chase account (non ISA). I think I will have to pay tax on the interest.Also, I hope to make a gain from the sell of my BTL. I think I'd have used up all my personal allowance and the way I think I will be able to minimise tax is to invest in stocks, otherwise in some savings accounts and get tax on it.Thanks for clarifying as I had thought that when I have sold my BTL I will have to pay CGT and also income tax PS: a while back I think you have helped me worked out that it maybe better to move this money to an new ISA to earn more interest than directly transfer a low 0.5% matured ISA to S&S ISA. and still in that process and not understand enough to select a fund, appreciate that, as I have at least earned 3.13% more. thank you.0 -
At the risk of stating the obvious, capital gains tax is payable on capital gains and income tax is payable on income!
Selling a BTL property for a profit (exceeding the CGT threshold) will give rise to a CGT liability but won't make you a higher rate (income) taxpayer.
The benefits (or not) of moving money from an ISA to a taxable account are completely dependent on what your income tax situation is, so it remains impractical to offer guidance without more facts to go on regarding income....1 -
eskbanker said:At the risk of stating the obvious, capital gains tax is payable on capital gains and income tax is payable on income!
Selling a BTL property for a profit (exceeding the CGT threshold) will give rise to a CGT liability but won't make you a higher rate (income) taxpayer.
The benefits (or not) of moving money from an ISA to a taxable account are completely dependent on what your income tax situation is, so it remains impractical to offer guidance without more facts to go on regarding income....0 -
If you have a low income, the first £12570 of any income is tax-free. Then the next £5000 (Starting Rate for Savings) of interest is taxed at 0%, as is £1000 Personal Savings Allowance. You can also get £500 of dividends at 0% outside an ISA. Anything inside an ISA is of course exempt.Eco Miser
Saving money for well over half a century1 -
Eco_Miser said:If you have a low income, the first £12570 of any income is tax-free. Then the next £5000 (Starting Rate for Savings) of interest is taxed at 0%, as is £1000 Personal Savings Allowance. You can also get £500 of dividends at 0% outside an ISA. Anything inside an ISA is of course exempt.If you make £20,000 interest does that mean the first£12750 tax free, then next£ 5000 is at 0% tax?£ 1000 is at 0% tax?then the remaining interest £1250 (£20,000 - £12750 - £5000 - £1000) will be taxed at 20%?
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards