Is it worth using up my isa allowance for this year as I can get 4.17% gross per annum in a 2 year taxable account. Isa rates seem so low.
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804MikeGG1 postedIt depends on a number of factors, the principal being what your highest tax rate is. If you are a higher rate payer then it is definitely worth it. If a basic rate payer, then that is marginal. It would depend on what other ISAs you already have. That is how much and where? There are some reasonable rates about.
Why not consider Stocks and Shares ISA? I know it would only shelter you from Capital Gains Tax and there are strategies to overcome that by divesting gradually, but you might need to divest in a hurry.
Mike
Posted on 29 November 2009 |
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0kay60 posted
Thanks so much for answering. I am a retired basic rate tax payer. I have £43000 (a pension lump sum) currently in a Saga fixed rate account, and £10000 in a Halifax fixed rate isa. Both are almost due for renewal and I would normally transfer the amount of the isa allowance. I depend on the monthly interest, and am a little afraid of stocks and shares.
Posted on 29 November 2009 | Love 0 loves
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804MikeGG1 posted
With £10K now and another £5k now and for next April, you are almost up to the the highest bands for ISA rates. April 2011 would see you there.
However, I would go for a transfer to a Fixed Rate ISA and the following link is a good rate of 4,20% fixed for 3 years. That is equivalent to 5.25%.
http://www.principality.co.uk/default.aspx?page=1563
Mike
Posted on 30 November 2009 | Love 0 loves
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