Isa vs savings account

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Prestwickboy2
Prestwickboy2 Posts: 12 Forumite
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in ISAs & tax-free savings
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

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  • jaybeetoo
    jaybeetoo Posts: 1,337 Forumite
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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.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    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.
  • 18cc
    18cc Posts: 2,120 Forumite
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    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 rest
  • jimjames
    jimjames Posts: 17,619 Forumite
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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 above
    Remember the saying: if it looks too good to be true it almost certainly is.
  • wgt24
    wgt24 Posts: 16 Forumite
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    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.
  • ColdIron
    ColdIron Posts: 9,051 Forumite
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    Seems you are now expressing doubt
    wgt24 wrote: »
    I currently have about 13k in an HSBC S&S account, only one I've ever tried.

    Returns are decent but was just curious if anyone would recommend putting it somewhere else for greater return or other benefit?
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    wgt24 wrote: »
    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.
    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?

    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!
  • Alexland
    Alexland Posts: 9,653 Forumite
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    eskbanker wrote: »
    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?

    Alex
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