ISA or savings a/c? Advice please

sparrer

I reached 60 in July last year so any savings are now paid before tax. I have a Halifax basic a/c, and a Halifax ISA which will mature on 5th April. I know the interest rate isn’t the best so I am wondering if I should now just find a savings account, as in October I shall need to take out a hefty sum (£500/£600 for cam belt replacement) and believe I can’t replace anything I take out from an ISA.


If I wanted to change the ISA to a different provider with a higher interest when is the best time to do so? Do I have to take all the money out of the current one on 5th April?


Also, as I can only have a basic bank a/c would I be refused a savings a/c? I have looked at the interest rates of different providers and they seem to be similar to ISA's.


Ironic that only now when I am retired I can afford to save a few £’s a month and may have a choice of where to put it! I would be grateful for any advice.

Sparrer

jem16

sparrer wrote: »

I reached 60 in July last year so any savings are now paid before tax.

Age has nothing to do with tax. If you have income over £5435 in the next tax year you would still be liable for tax.

I have a Halifax basic a/c, and a Halifax ISA which will mature on 5th April. I know the interest rate isn’t the best so I am wondering if I should now just find a savings account, as in October I shall need to take out a hefty sum (£500/£600 for cam belt replacement) and believe I can’t replace anything I take out from an ISA.

No you can't replace it but does it matter? Why subject the rest of your savings to possible tax? If you are sure you will never pay tax it doesn't matter I suppose.

If I wanted to change the ISA to a different provider with a higher interest when is the best time to do so? Do I have to take all the money out of the current one on 5th April?

You can transfer when you want although April can be the busiest time.

Your ISA will probably be transferred into a variable rate ISA which you can keep going or transfer.

Also, as I can only have a basic bank a/c would I be refused a savings a/c? I have looked at the interest rates of different providers and they seem to be similar to ISA's.

It shouldn't be a problem.