You're right.
Best savings account?
- Thread starter Merlin5
- Start date
Not always the case with cash ISA.
What is a flexible ISA?
You're now able to withdraw and replace ISA cash from some ISAs without affecting your allowance.www.moneysavingexpert.com
Also, interesting "hack" at the bottom of that article, that doesn't sound quite right...
Surely if you've had savings in a normal savings account for most of the year, then the interest will be paid into that account regardless if you shifted the funds?
Its not saying that.
Its optimising the interest. Where a non isa account has more interest than cash isa. So money sits in that high interest account for 11 months and then move it back into isa which is (in aim of this example) earning less.
this is gaining the difference in interest on 20k for 350 days.
If its 2pc difference its worth about 400 gbp. Potentially worth it actually.
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Soldato
I understand that, but what I'm not getting is how this will maintain tax free status on the interest accrued in the normal savings account.
Oh I'd assume that doesn't apply.
It probably something that's best if you're under 50k and get the 1k allowance. You could get 5pc tax free on that 20k that way
I think its saying move your £50k out into a higher rate account, bank that interest and then transfer back the 50k into the ISA before the year is over to maintain the £50k allowance, I'm not sure it will work. Most fixes with higher rates are 1 year long so you wouldn't be able to do it.
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Soldato
At the start of the guide, they say:
As I say, I don't get it because he's telling us to move the funds to other savings accounts therefore your money won't be tax free in an ISA.
As I say, I don't get it because he's telling us to move the funds to other savings accounts therefore your money won't be tax free in an ISA.
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Associate
It's keeping the bulk of the money tax free, but not the interest.
Soldato
We only get taxed on interest, the capital is always tax free.
Associate
Sorry I meant that it keeps the bulk in a tax free state for the following tax year. £20k the first, £40k the next etc.
Soldato
Chip's easy access account is just a regular compounding interest account now at 3.05% aer.
Also allows debit card payments which has its bonuses for me.
Also allows debit card payments which has its bonuses for me.
Soldato
Chip up to 3.15% aer
Man of Honour
They're FSCS protected and pay you money, not much more to say
fair enough - i'm pretty annoyed by marcus only putting their rate up to 2.8 so i might as well switch.They're FSCS protected and pay you money, not much more to say
Associate
My First Direct account has a savings account which pays 7% but you can only add 300 a month.
I like to use these for my holiday fund. Feels like getting a free holiday every year.
Soldato
I've had it for about a month, they are pretty good.
App is fast and easy to use, deposit using a linked bank account or debit card. The withdrawal was also rapid. It calculates and shows your interest daily, though it's paid monthly.
Biggest downside is they offer other paid for services in the app like investments and "ai powered" saving roundups which are all off by default but do bloat the app a bit.
Yeah I have that, plus £150 and double roundups into a 6.1% RBS account. Chip is for a lump sum and anything left at the end of the month.
Soldato
I need to move some money about, might try chip. How does the interest work on the instant access?
is it paid monthly or yearly and where does the interest get paid? wondering if I can have interest paid automatically to another non chip account or would I need to move it manually out of chip?
Thanks