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Isa vs savings account
Prestwickboy2
Posts: 12 Forumite
Hi I have £16000 in an instant cash isa paying 0.6%. Would I be better putting it into a savings account. Would I get the savings account tax free and a higher rate. I am a 40% tax payer.
Thanks
Thanks
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Comments
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There are cash ISAs with much higher rates.
As a 40% tax payer you can earn up to £500 interest in a savings account before paying more tax.0 -
As a 40% tax payer you can earn up to £500 interest in a savings account before paying more tax.
If you are caught by the High Income Child Benefit Charge or have income between £100-£123k you may have additional tax to pay even if the interest is only £500.0 -
Paragon bank have an easy access cash ISA paying 1.35% just switch it so them you do it all online. Go to the Paragon Bank website, create an account, apply for an easy access cash ISA, type in the sort code account number of a cash ISA you want to switch and they will take care of the rest0
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Or if you want to maximise your interest and £16k is your total savings then you could move some into current accounts paying up to 5% as well as regular savers.
You can get 1.5% on the whole amount outside an ISA which will still be within your £500 allowance subject to the caveat aboveRemember the saying: if it looks too good to be true it almost certainly is.0 -
I'd put it in an HSBC stocks & shares ISA - had great returns for me from the 3 years I've had my money in there.0
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Aside from your enthusiasm for promoting what most people would consider to be a poor product, what makes you believe that any S&S ISA, even a good one, would be appropriate for OP's requirements?I'd put it in an HSBC stocks & shares ISA - had great returns for me from the 3 years I've had my money in there.
OP - even if you're not looking for capital-protected cash deposit accounts (and there's no reason to suspect that you're not from what you posted), there are many better options for your money than a high-cost low-choice HSBC S&S ISA!0 -
Aside from your enthusiasm for promoting what most people would consider to be a poor product
Although wgt24 probably has their rubbish retail product it's worth noting that the HSBC Investment Center ongoing platform fee is now only 0.25% (was 0.39%) and offers a choice of over 400 funds including their Global Strategy series.
https://personal.hsbc.co.uk/investments/products-and-services/global-investment-centre/
HSBC GS funds have lower fund transaction costs than VLS so this might now be a good value product and platform combo?
Alex0
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