Where is Everyong Hiding Money?

Newbie_John

I keep all in ISAs, if something happens and I need to buy something quite expensive unplanned I'd just use a credit card for that then pay off later.
Premium Bonds are also good as a place holder if you run out of ISA limits.

Archerychick

My strategy is to maximise returns, but towards the end of the tax year make sure I use my full £20k isa allowance by shifting money around that’s not in a fix. 

A 7% regular saving account will get me more than a ISA account after tax for instance. 

Future finances are also important to consider. If I don’t use my isa allowance I know that next year I’ll have cash that will earn me less outside of an ISA account after tax, so I’ll definitely be sweeping as much as I can in to my flexible ISA in March. 

I also have some fixed ISA accounts as well as a S&S ISA for long term funds. 

Ultimately it depends on your objectives what the best course of action is, so if you can share more details you’ll get better useful suggestions 

subjecttocontract

I came across this a few days ago :-

'' No man in this country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or his property as to enable the Inland Revenue to put the largest shovel in his stores. The Inland Revenue is not slow - and quite rightly - to take every advantage which is open to it under the Taxing Statutes for the purpose of depleting the Taxpayer's pocket. And the Taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue''
Lord Clyde 1929.

LHW99

Keep a small amount in a (taxable) bank savings account where you keep your currernt account - say £5k to £10k - literally instant access to move from one to another.

Keep as much as possible in ISAs. Easy access / flexible cash ones, money available next day or 2-3 days to a linked current account, depending on the organisation. S&S withdrawals take maybe 5-10 working days allowing for selling funds / shares and withdrawing.

Anything more / waiting to go in an ISA put in premium bonds - prizes are tax-free.

TractorFactor

MeteredOut said:

TractorFactor said:

And what happens if there's an emergency and you need the money tomorrow?  From what I see, there are lead times with moving money in to and out of ISA accounts?

And I see many / most ISA businesses charge people to use them.

You have some outdated and downright wrong views on ISAs. Its not clear if you're referring to Cash ISAs, Stocks and Shares ISAs, or both.

I see.
When you said "some" you meant two, which seem to apply to S&S ISAs.
Thanks for clarifying, although could have been a little less rude about it.

artyboy

Squeeze every possible tax free penny out of incentives to move your money (and your business) around. Pension cashback offers, free shares, bank switching bonuses, TCB, Quidco... the list goes on, and if you actually enjoy playing that game, it can be a pretty lucrative side hustle.

Eyeful

TractorFactor

If you have £40k and are being taxed on it, stop complaining about it.
Think of all the good you are doing. After it is Christmas & good will to all etc
.:

1. You are very lucky, many do not have anywhere near that amount of cash.

2. You are contributing to the NHS, Armed forces,and MP's pay and pensions.

3. You are helping the chancellor fill the "black hole" she tells us she has. 

Someone has to pay for all that.

Deciding not to use tax shelters when available could indicate you are Philanthropic 
  

SVaz

It took about 20 minutes for cash from my Wife’s T212 cash isa to hit the bank account.

EASY Access ISAs are just that and you can also have fixed term / limited access ones.  

My Shawbrook cash ISA is paying 4.5%,  why on earth would I have cash in a normal savings account, paying less interest AND attracting tax?  

subjecttocontract

Yes I'll second that.

DRS1

@TractorFactor If you are going to put your cash into a cash ISA don't hang around.  The maximum you can put into a cash ISA in a tax year will be going down to £12k in 2027.