You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
Currently got a Isa with HSBC 1.2 interest,but just signed up to a account with Santander at 2.75 instant access.Obviously ISa tax free,just wondering if I'm missing something here,but would it make more sense transferring everything I have with hsbc to the Santander account.Cheers
Depends how much cash you are talking about. You can now get a certain amount of interest tax free, even outside an ISA. Google the amount. If below that then perhaps go with the 2.75.
If more than that search around for an ISA with a less pisstakingly low rate and then transfer across. Do not withdraw and pay in or you will screw your allowance ( assuming we're talking serious amounts)
Depends on the amount involved. You are allowed a decent amount interest tax free outside an ISA.
Basic-rate taxpayers qualify for a £1,000 PSA. This means they can receive up to £1,000 a year in savings income tax-free.
Higher-rate taxpayers, have a PSA of £500 a year, meaning they can earn £500 a year in savings income before they have to start paying tax on it.
Santander currently have the best ISA rates that I could find assuming you don’t need access to the money. 4% on 18mnth or 4.2% for 24 months I think, could you transfer across to one of those?
Even the 12 month ISA is 3.75% or thereabouts. I think it may be fixed though. I’d expect strong ISA competition this year so in 12 months time the rates will be even better (probably). I’d go one year fixed ISA for majority, the remainder in cash account then swap product in 12 months.
It's great us savers are finally starting to get some half way reasonable rates again after all these years.
It does appear that some savings accounts pay better interest than isas.
I'm quite confused though as a non taxpayer(I live on savings until I can draw pension in a few years), if I have to pay tax on interest if it's over £1000.
I’m quite confused though as a non taxpayer(I live on savings until I can draw pension in a few years), if I have to pay tax on interest if it’s over £1000.
Yes.... if it was in a ( number of [£85k go bust government guarantee scheme etc etc]) normal savings accounts then
You'll pay 0% up till ~£13,570
20% on the next £36,430
40% on the next £50,000
60% on the next £25,000
40% on the next £25,000
45% on anything above that.
( all approx, can't be arsed looking up the actual thresholds)
Though of course you won't because anyone that rich has highly paid accountants to find all the loopholes 🙂
Have you thought of cycle to work vouchers 😉
* obvs you'll pay nowt if it's in ISAs
I wouldn’t call 4% reasonable with inflation at 10.
I wouldn’t call 4% reasonable with inflation at 10.
I agree.
However my Stocks ISA and pension are currently both at -20% due to world events.
So 4% seems rather tempting.
I wouldn’t call 4% reasonable with inflation at 10.
It’s better than the 0.5% I have been getting up to now.
If you were getting 0.5% when inflation was at 2% then you were losing 1.5% in real terms (I.e the cash in could buy 1.5% less stuff even if the number was bigger). With inflation at 10%, an interest rate of 4% means you are losing 6% in real terms.
Yeah very true.
I’ve spent the last 5 years meaning to get around to doing something grown up with our little bit of money, I’ve finally at least done something with it 🙂
My s&s ISA over the past 5 years peeked at about 25%. It's now down to 1%. It would have done better in a .5% cash ISA. Who knows if it's likely to tank further.
That's why I'm yanking it into a cash ISA now as I need safe pre retirement money and 3% seems pretty damn good.
Thank you thegeneralist. Looks like I won't have to pay interest if I move it from ISA to a normal savings account as it's unlikely the interest would exceed £13570.
Thank you thegeneralist. Looks like I won’t have to pay interest if I move it from ISA to a normal savings account as it’s unlikely the interest would exceed £13570.
What I wrote is just based on my understanding, as in past years I just added my interest to my income when doing a tax return. My assumption is that if you've no other income then the interest works as I described.
But it's just my assumption and given how important this is to you, you should get a further opinion.
I had expected the usual spread of agreement/tweaking/ clarification that discussions here normally produce, then you could have reviewed and formed a view. But silence.
@STWHiveMind : agree or disagree?
<Edit, sorry irc . Just realised you did agree, with source> awesome.
Nationwide have got a 4% 1yr fixed.
I wouldn’t call 4% reasonable with inflation at 10.
I agree.
I've never understood the implication that an unjust travesty has occurred if risk-free bank savings rates do not match inflation.
If it were the case that risk-free savings rates matched inflation, wouldn't inflation become an irrelevant thing to think about?
It would be nice to worry about earning £1k in interest.
If you're in the same boat OP, put the money where ever gives best interest.
It's been constantly changing the last 3 weeks or so.