ISA questions

7136

Just a little advice please.
I have chosen to continue working whilst collecting my pension. I work full time and enjoy my work but am paying more tax so last year I opened an isa. Now it’s the new tax year I am considering paying my government pension each month into it, I know there are better saving options out there but ISA is tax free. So I’m wondering if I have done the right thing or is there a better option.

Albermarle

If you are a 20% taxpayer, you can earn up to £1000 in interest per tax year, tax free.

If you are likely to be above that, then it is usually better to save in a cash ISA, unless the interest rate is more than 20% less ( which it is not currently) .

If you are a 40% taxpayer then then you can only earn £500 tax free.

Premium Bonds are tax free as well, although the average return is below the better savings rates.

Be aware there are quite a lot of rules around ISAs, but a good read through this forum should get you up to speed.

Mabel2012

I have a one year old Easy Access ISA earning 3.6% with Skipton total £26k. I have just opened this years Easy Access ISA 4.02% with them for £20k, I want to combine funds in the higher interest account but I get an error message saying I am exceeding my ISA allowance. Last years money was ISA funds saved over a couple of years and this years ISA funds is in the second account paying 4.02%. I'm not exceeding the ISA allowance.

Do I have to move my finds to another provider to get a better interest rate?

I'm happy with Skipton but I wish to get the best interest and not get stuck with a poor rate if I'm loyal.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81953778#Comment_81953778

You need to make an internal ISA transfer to move your existing Skipton ISA to the new one. If you withdraw your money from the old ISA, it loses its tax free status and counts as current year contribution. Best call Skipton / pop into a Skipton Branch to get it sorted.

MDMD

https://forums.moneysavingexpert.com/discussion/comment/81953778#Comment_81953778

Unfortunately the Annual Allowance ISA only accepts current year subscriptions

https://www.skipton.co.uk/savings/isas/easy-access/member-annual-allowance-cash-isa

You can transfer the other one to another different ISA with them by requesting when you apply

Mabel2012

https://forums.moneysavingexpert.com/discussion/comment/81953832#Comment_81953832

Thanks for replying. Thats a bummer. I didn't see that when I was checking the Ts&Cs. I was trying to reduce the number of accounts this year but I have been defeated again. The error message should have been clearer just like your reply.

As I'm just 1 day into my new account do I have 14 days to transfer both accounts to a new provider.

PeskyBlunder

There is a 14 day cooling off period but does it matter? Why not just open an ISA with the new provider and transfer both Skipton ISAs?

Mabel2012

https://forums.moneysavingexpert.com/discussion/comment/81954531#Comment_81954531

I will check with Skipton as I was told I could add the old ISA funds to the new account after I opened it so I could get the higher interest on all funds.

This was the first year that I thought I would not have to move to a new provider to get good interest.

8/4/26 I have got 3.9% on a 2 access a/c from talking to Skipton CS. Not my original intention but better than starting another a/c with a different provider,

/i'm now a happy bunny.