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cash isa saver

11
Found 10th Apr
so i have cash isa saver, and of course got Very tiny interested, but when I try to take it out it repeats the warning, you lose tax free, unless you put it back, it's not fixed so thought i could just take it out
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11 Comments
If you take it out you lose the tax free wrapper (presumably from a previous tax year /years ) . You are allowed £20K a year under this wrapper . You can withdraw it and put it back later but only up to the current years £20K limit .
Original Poster
rogparki1 h, 2 m ago

If you take it out you lose the tax free wrapper (presumably from a …If you take it out you lose the tax free wrapper (presumably from a previous tax year /years ) . You are allowed £20K a year under this wrapper . You can withdraw it and put it back later but only up to the current years £20K limit .


and if i don't put it back, will the rest of money still be tax free, it's way under 20k
Original Poster
rogparki1 h, 3 m ago

If you take it out you lose the tax free wrapper (presumably from a …If you take it out you lose the tax free wrapper (presumably from a previous tax year /years ) . You are allowed £20K a year under this wrapper . You can withdraw it and put it back later but only up to the current years £20K limit .


and i don't put no more money in, it just sits there for thunder days
jonmarz8914 m ago

and if i don't put it back, will the rest of money still be tax free, it's …and if i don't put it back, will the rest of money still be tax free, it's way under 20k


Yes the money left in there will continue to earn interest tax free.
Original Poster
XSerenityX2 m ago

Yes the money left in there will continue to earn interest tax free.


so what it means lose tax free, does it mean lose tax free allowance or the money u earn on tax free interest,
TBH, Cash ISA's have lost their appeal, IMO (for basic rate taxpayers).
Yes, you earn interest with no tax liability, but unless you have many years Cash ISA's or a stash load of money in saving accounts it's not worth much. The Personal Savings Allowance (PSA) is now £1000 of INTEREST per year - you would need > ~£90K in cash savings to start paying tax on savings (although anyone with £90K savings may well be a higher rate payer with only £500 allowance. Cash ISA rates are often lower than comparable fixed rate savings. MSE discusses the remaining advantages of Cash ISA here.
To answer the OP question, if you have a Cash ISA with "way under 20k" and that is your main cash savings, removing it from an ISA will probably have no effect and you may be able to get a better rate with a regular saver account.
jonmarz891 h, 1 m ago

so what it means lose tax free, does it mean lose tax free allowance or …so what it means lose tax free, does it mean lose tax free allowance or the money u earn on tax free interest,



What you have in there now will be tax free for ever ,so should be regarded as a very long term cache .

We can now earn up to £1000 interest per annum tax free on any savings account ,so could be better for you to hunt out the best savings rate (some current accounts and current account linked savings plans pay up to 5% .

You don't lose your interest if you withdraw from your ISA - you just lose its tax free status in the future - so unless you have over about £80 ,000 ish in savings at present it is probably better to find a better interest rate for your "rainy day money ".
jonmarz891 h, 29 m ago

so what it means lose tax free, does it mean lose tax free allowance or …so what it means lose tax free, does it mean lose tax free allowance or the money u earn on tax free interest,


the money you took out would have earned interest tax free if you had left it in the cash ISA. for those that are not high rate tax payers, you now can earn up to £1,000 a year of interest tax free even if you don't put it into an ISA.

ISA are no longer that great for basic rate tax payer unless you worry that they may change the rule on the £1,000 interest tax exemption or that you may become a high rate tax payer in future. 'worry' isn't probably the correct word to use about becoming a high rate tax payer but we all worry about paying tax
Original Poster
mutley129 m ago

the money you took out would have earned interest tax free if you had left …the money you took out would have earned interest tax free if you had left it in the cash ISA. for those that are not high rate tax payers, you now can earn up to £1,000 a year of interest tax free even if you don't put it into an ISA.ISA are no longer that great for basic rate tax payer unless you worry that they may change the rule on the £1,000 interest tax exemption or that you may become a high rate tax payer in future. 'worry' isn't probably the correct word to use about becoming a high rate tax payer but we all worry about paying tax


i can safely say I will never get interest on the thousands mark 😁, i been looking at isa and saving but just see under 1.5 percent, I think I seen virgin isa offer 5 percent, but never been with anon main bank
jonmarz8953 m ago

i can safely say I will never get interest on the thousands mark 😁, i …i can safely say I will never get interest on the thousands mark 😁, i been looking at isa and saving but just see under 1.5 percent, I think I seen virgin isa offer 5 percent, but never been with anon main bank


i haven't seen any 5% ones around. just under 1.5% ones. if you doubt you will be earning thousand of pounds in interest or that you will be a high earner in future, then there is very little point in cash ISA for you these days.

i don't have any cash ISA any more as they are pointless even for me who is a high rate tax payer. i have all my ISA money in stocks and shares.
Virgin's cash isa is 2.05% for a five year fixed rate. With a base rate of 0.5%, you aren't going to see 5% interest. It doesn't make sense.
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