I've never had any savings before and need help

CliveOfIndia

https://forums.moneysavingexpert.com/discussion/comment/81907735#Comment_81907735

Pretty much, yes. Transfer £20K now, then from 5th April you could do another transfer of up to £20k, without any hassle from the tax-man. The ISA limits are based on the standard HMRC tax accounting year.

surreysaver

https://forums.moneysavingexpert.com/discussion/comment/81907638#Comment_81907638

It depends, though. Does the OP have any other income and do they pay tax?

If so, what would the interest rate be in a non-ISA after tax, compared to what the ISA pays?

ISAs aren't automatically better.

Middle_of_the_Road

Many of the top paying ISAs currently included a 1 year bonus within the published interest rate.

This generally means that to continue getting a good return, you would need to continually request transfers when the bonus period ends.

It is essential to not withdraw the funds your self, but instruct the new provider to request the transfer, when you choose a new ISA, otherwise the tax free status would be lost.

If you envision needing access to any of the money, check how many withdrawals are permitted, and also if it's a flexible ISA, meaning that any withdrawals can be replaced without affecting your annual £20k allowance.

la531983

https://forums.moneysavingexpert.com/discussion/comment/81907762#Comment_81907762

Well yes we can only provide generic advice, the op could be a top tax rate payer for all we know, or could be unemployed with no other income. Or could be neither.

cc123mm456

https://forums.moneysavingexpert.com/discussion/comment/81907752#Comment_81907752

It's from 6th April, not 5th.

The HMRC tax year starts 6th April each year and ends on the 5th April in the following year.

CurlySue2017

Sorry I should have clarified after someone mentioned it in a previous post….

The only income I have is from my full time job and I am a standard rate tax payer (not a high earner), I have no other income. I also pay into a workplace pension if that has any relevence.

"Many of the top paying ISAs currently included a 1 year bonus within the published interest rate.

This generally means that to continue getting a good return, you would need to continually request transfers when the bonus period ends."

Thank you for bringing this up because this is another thing for me to consider, I don't particularly want to be having to monitor this and keep moving it around for the sake of gaining a few pence more. As you are seeing from my posts, I'm absolutely not clued up on any of this - I've never had enough money to need to know! 🤣

Altior

HL are selling the 'top rate' as one that doesn't have a bonus that terminates after a fixed period. The company is going through somewhat of a reputational repair, my guess would be that it would stay pretty competitive for a while. However, it could be gone in a week, nobody knows.

It's likely you will need to remain somewhat active, to keep pace with the market. If that's what you require.

Banks rely on customer lethargy.

The compromise is signing up to a savings platform (such as HL's coincidentally enough). You will likely pay a tiny price for the convenience (in the form of a slightly lower rate than direct), but it's then very easy to shift money around as/when needed. Without the need for multiple log ins/applications.

friolento

you need to monitor all types of savings accounts, ISA and non-ISA, as the rates can change. Even fixed term and fixed rate accounts do require attention, at the end of the term, and/or when the fixed rate expires. It only takes a few minutes now and then. I diarise relevant actions for my accounts

mebu60

https://forums.moneysavingexpert.com/discussion/comment/81907752#Comment_81907752

@CliveOfIndia 'Pretty much, yes. Transfer £20K now, then from 5th April you could do another transfer of up to £20k . . . .'

From 6th April

If you are a standard rate taxpayer you can earn £1k of interest tax free per tax year. I'd suggest getting the initial £20k into a cash ISA asap and certainly by 2nd April (3rd is Good Friday, 5th is Easter Sunday).

But with the remaining £15k you should check out Easy Access accounts if they pay higher interest than a prospective Cash ISA given you can receive up to £1k of interest without paying tax.

maman

The vast majority of ISAs you open online and when you fill in the online form it asks you to nominate the bank where the money is to come from. I've always transferred the money from my current account. Others can advise whether it can be taken from your savings account or you need to transfer it first. 🤔