Best savings account?

[mattyfez]

If my limited understanding is correct the new rules (April 24) allow multiple ISAs to be paid into in the same year as long as the total paid into all ISAs doesn’t exceed the annual limit, but I believe your example would also be acceptable under the current rules - if they weren’t changing in April

I don’t think buying and selling within an ISA counts towards the limit.

I’m not a financial advisor and this is not financial advice (I have watched a few YouTube videos).

I think that's correct, as long as you don't put more than 20k into any isa in the same tax year.

I don’t think buying and selling within an ISA counts towards the limit.

It doesn't, but not all ISAs are 'flexible', with flexible ones you can take money out and put back in, as long as you don't exeed the 20k total over all, so if you take 10k out of one, you can put that 10k into another if it's a 'flexible' ISA?

 

[bigmike20vt]

has that changed at some point over the years?. I am almost certain that at least in the past if you take money out of an isa it CANT be replaced...... even in the same year..
I may be wrong and perhaps this has changed....?

 

[ChrisD.]

has that changed at some point over the years?. I am almost certain that at least in the past if you take money out of an isa it CANT be replaced...... even in the same year..
I may be wrong and perhaps this has changed....?

The question appears to be regarding selling and buying shares within the ISA which is allowed.

This video is worth a watch.

 

[Freakbro]

has that changed at some point over the years?. I am almost certain that at least in the past if you take money out of an isa it CANT be replaced...... even in the same year..
I may be wrong and perhaps this has changed....?

That was the case with cash ISA's but it changed in 2016 with the introduction of flexible ISAs, where you can withdraw cash and replace it within the same tax year. Not all ISAs are flexible though.

Rules are changing again this year when you will be able to have multiple ISAs of the same type, which should help competition with rates.

 

[Mercenary Keyboard Warrior]

has that changed at some point over the years?. I am almost certain that at least in the past if you take money out of an isa it CANT be replaced...... even in the same year..
I may be wrong and perhaps this has changed....?

This is what flexible refers to

 

[bigmike20vt]

ahh ok thanks, I consider myself schooled then. I always assumed (and i know what they say about assume) flexible just meant you didnt take a hit on your interest, rather than it not affecting your max allowance.

good to know, many thanks.

as an aside... i almost dropped a bit of a clanger last night. I didnt think i had used this years ISA and was going to open one and mostly fill it. it is a good job i didnt as it seems i did open on in August last year.

Am not sure what the probability of getting caught out is by opening multiple isas.......... but i dont fancy having some sort of HMRC audit.

maybe i will buy some premium bonds instead. both my parents have their full allowence in those and they are doing ok out of them, tax free as well, plus with the added interest of the lottery like possibility of winning big.

 

[roccles]

@Whitewater thank you. I had missed that in the changes this year so it works out even better than I was hoping can just use both (or more) now if required.

 

[ShiWarrior]

So from 6 April, we will be allowed to pay in 2 types of ISAs , good news

Is it worth just opening another cash isa (but adding no money) to get a good rate?

 

[Mercenary Keyboard Warrior]

So from 6 April, we will be allowed to pay in 2 types of ISAs , good news

Is it worth just opening another cash isa (but adding no money) to get a good rate?

I think you will struggle to find one you can open with no deposit

 

[200sols]

Most fixed rates require funding within the initial window and easy access are variable rate, I see no benefit.

 

[ShiWarrior]

I think you will struggle to find one you can open with no deposit

Most fixed rates require funding within the initial window and easy access are variable rate, I see no benefit.

Cool, cheers guys
Roll on 6th April!

 

[mattyfez]

I think you will struggle to find one you can open with no deposit

Some you can open with £1 though... Chip cash ISA for example.

Edit... Ah but it's variable rate though..

 

[ShiWarrior]

Ah but I'm not allowed to deposit any money other than the one I've got until the rules change

 

[Freakbro]

Ah but I'm not allowed to deposit any money other than the one I've got* until the rules change

*of the same type.

You can have say a cash ISA and a S&S ISA as the rules stand now, as long as the total stays under the 20k threshold.

 

[DJMK4]

With regards to standard savings accounts (taxable) if your a high tax rate payer. I think anything you save in a savings account would be taxed on anything over £10k.

Correct ?

When do they tax you? Monthly/ annually And also what % ? 20 or 40? ? Do they base it on how much you have in that account at that time.?

 

[tom_e]

With regards to standard savings accounts (taxable) if your a high tax rate payer. I think anything you save in a savings account would be taxed on anything over £10k.

Correct ?

When do they tax you? Monthly/ annually And also what % ? 20 or 40? ? Do they base it on how much you have in that account at that time.?

any interest over £500 is taxed at 40%, through your tax code AFAIK.

 

[413x]

With regards to standard savings accounts (taxable) if your a high tax rate payer. I think anything you save in a savings account would be taxed on anything over £10k.

Correct ?

When do they tax you? Monthly/ annually And also what % ? 20 or 40? ? Do they base it on how much you have in that account at that time.?

You're taxed on the interest above 500 (for a 40pc tax band)

So if you earn 600 in interest in the UK tax year the 100 over gets hit for 40pc tax.

My interest this tax year is about 480.
I've been careful not to go over 500

 

[200sols]

With regards to standard savings accounts (taxable) if your a high tax rate payer. I think anything you save in a savings account would be taxed on anything over £10k.

No, you are taxed on the interest in the year you can access it, others detailed above. The £10k rule is if you earn over £10k in interest in any tax year you have to file a self assessment.

 

[GSXRMovistar]

With regards to standard savings accounts (taxable) if your a high tax rate payer. I think anything you save in a savings account would be taxed on anything over £10k.

Correct ?

When do they tax you? Monthly/ annually And also what % ? 20 or 40? ? Do they base it on how much you have in that account at that time.?

If you have to do an annual self assessment then you will need to put in any interest earned on savings, following which you will be asked to pay the Taxman after submission of the self assessment.

 

[DJMK4]

Ok so If I earn over £500 interest per year is taxable at 40%