Soldato
- Joined
- 13 Sep 2005
- Posts
- 4,334
Yep 20k now and 20k in April is probably best.
Best savings account?
- Thread starter Merlin5
- Start date
I thought with ISAs you could only have a max of £20k ? And you can't open a new pot in the new tax year and save another £20k?
Soldato
- Joined
- 13 Sep 2005
- Posts
- 4,334
You can only pay in up to 20k per financial year. Once it hits April 3rd or whatever is it you can pay in another 20k without penalty/paying tax on earnings from it.
Ok so you could either pay in to the same ISA or open a new Isa. The rates usually drop in the new tax year don't they?
So essentially I could fill up my ISA this tax year if I opened it a few days ago . Then in April I could pay In more and earn 5.08% interest on balances of more than 20k ?
Soldato
- Joined
- 13 Sep 2005
- Posts
- 4,334
That's right yep. You can't have more than one ISA of the same type but can have a cash ISA and a S&S ISA for example providing you don't breach the 20k limit annually.
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Soldato
From April, you can have more than one ISA of the same type... which is a god send for people who invest in the stock markets and for people to shop around for the best rates.
But I thought with this you can only save a max of £20k between the two ? Its there to give people the opportunity to open an account which may have a better rate. Doesn't mean you can save 2 x 20ks in the same tax year ?
Soldato
No you can only put £20k into an ISA year but it can split that £20k between any ISA product you want.
Soldato
For example currently you can only pay into one of each so…
you pay 12,000 into a cash 5 year fixed isa and 8,000 into a stocks and shares isa to swing trade.
there was a trick to max out the payment from the previous year into an older isa, then use the cash pot throughout the new year… as long as you don’t pay in more than 20k between the two accounts.
from April you can have as many as you want…
so you can have 2k into an instant cash isa 2.12%
3k into an 3 year fixed isa 3.5%
5k into a 5 year fixed isa 3%…
6k into a vanguard stocks and shares isa for ETFs
4k into a t212 stocks and shares isa for reits and other companies ETFs
and if you wanted to, you can move some or all of the cash to different isa product…
normally it would be a PITA to work out the taxes, but ISAs are all tax free.
i‘m still debating if it’s worth using a stocks and shares isa for swing trading.. but I don’t think it’s worth it for day trading…
Soldato
Anyone got a Coop account that is eligible for the £125 referal scheme? Done all the other switches, this one is the last one to go.
Soldato
What is this?
Some banks let you have another after x years. Worth checking.
Gibbo might. He is on some aspiring boomer deal, so despite his youth he has some nuts % savings accounts etc.
Did think it was too good to be true. Trying to look for my partner to lock some away but she might need to access to fund a new car so not wanting to lock 1 or 2 years but on the other hand the rate might sink.
Soldato
You can get money for switching bank accounts, coop requires a referral and both parties get the reward.
Unfortunately I've done all the switches in the last year. £1350 so far though
I didn't realise it was variable ?
I have a zopa cash ISA account 5.08% so if they drop the rates I'm assuming I can move it to another lender, is there any chance of them lowering the rates ? If it's lowered I'd rather be on a fix
Soldato
A fix but potential to be taxed.