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Moving Savings, maximising returns.

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I'm thinking of moving my £40k currently in a Trading 212 cash Isa elsewhere now interest rates have dropped.

I am retired with a £13k a year pension, state pension a long way off.

Am I right in thinking that I can earn up to £4k in savings interest before it is taxed so I don't necessarily need an ISA?

Comments

  • wmb194
    wmb194 Posts: 4,963 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I'm thinking of moving my £40k currently in a Trading 212 cash Isa elsewhere now interest rates have dropped.

    I am retired with a £13k a year pension, state pension a long way off.

    Am I right in thinking that I can earn up to £4k in savings interest before it is taxed so I don't necessarily need an ISA?
    Yes, see:

    https://www.moneysavingexpert.com/savings/tax-free-savings/
  • kimwp
    kimwp Posts: 2,986 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 8 August at 9:31AM
    wmb194 said:
    I'm thinking of moving my £40k currently in a Trading 212 cash Isa elsewhere now interest rates have dropped.

    I am retired with a £13k a year pension, state pension a long way off.

    Am I right in thinking that I can earn up to £4k in savings interest before it is taxed so I don't necessarily need an ISA?
    Yes, see:

    https://www.moneysavingexpert.com/savings/tax-free-savings/
    I think its £5570 you can receive in savings interest before it is taxed if you are earning £13k

    £17570-£13,000 = £4570 - which is below the 5k starter savings 
    Plus 1k personal savings allowance for those who earn more than the £12,570 personal tax allowance but less than the £50,270/year limit 
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • wmb194
    wmb194 Posts: 4,963 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    kimwp said:
    wmb194 said:
    I'm thinking of moving my £40k currently in a Trading 212 cash Isa elsewhere now interest rates have dropped.

    I am retired with a £13k a year pension, state pension a long way off.

    Am I right in thinking that I can earn up to £4k in savings interest before it is taxed so I don't necessarily need an ISA?
    Yes, see:

    https://www.moneysavingexpert.com/savings/tax-free-savings/
    I think its £5570 you can receive in savings interest before it is taxed if you are earning £13k

    £17570-£13,000 = £4570 - which is below the 5k starter savings 
    Plus 1k personal savings allowance for those who earn more than the £12,570 personal tax allowance but less than the £50,270/year limit 
    Yes, it reduces, but it's explained in the link.
  • Beddie
    Beddie Posts: 1,015 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    It's worth waiting a couple of weeks, until the majority of providers have adjusted their rates. You might find T212 are still competitive by the end of the month. I'm sticking with them for now.
  • DRS1
    DRS1 Posts: 1,286 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If you take £40k out of an ISA it will take you two years to get it all back in.

    How will you feel if the £5k band is abolished?  I know plan on existing law not what might happen.  But do you really need to take that money out of an ISA?
  • Purpleheart
    Purpleheart Posts: 38 Forumite
    Seventh Anniversary 10 Posts Photogenic
    I have decided to transfer my money to a fixed rate lSA with a local building society.

    Thank you for all your replies and advice.


  • FrugaiMacDugal
    FrugaiMacDugal Posts: 234 Forumite
    100 Posts Photogenic First Anniversary Name Dropper
    I'm thinking of moving my £40k currently in a Trading 212 cash Isa elsewhere now interest rates have dropped.
    Wise to keep the ISA wrapper.
    Just curious, where were youi thinking of moving to for a better rate?

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