littleoldlady
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Post by littleoldlady on Aug 18, 2022 10:50:46 GMT
With interest rates climbing many savers who were below the £500/£1000 limit will soon find themselves needing to pay tax, which brings ISAs back into contention. Has anyone heard anything about a Zopa ISA?
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 18, 2022 13:25:30 GMT
Cash ISAs will only come back into contention for me when they stop deducting at least the eqivalent of 20% tax from their rates 
Examples:
One-Year Fixed Rate Bond at Charter Savings Bank 2.87% (2.30% net)
One-Year Fixed Rate ISA at Charter Savings Bank 2.13%
Two-Year Fixed Rate Bond at Charter Savings Bank 3.12% (2.50% net)
Two-Year Fixed Rate ISA at Charter Savings Bank 2.50%
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Aug 19, 2022 7:58:22 GMT
They have extra costs involved in running an ISA account (caused by completely unnecessary bureaucracy designed to keep some Civil Servants employed) so a reduced rate is reasonable, but you are right the reduction looks suspiciously like the same amount as the tax saving for a basic rate payer. However they are back in contention if you pay tax at 40%, 45% or 60%. And even for a basic rate payer it might be preferable to get x% tax free rather than x% net of tax if it saves having to complete a tax return.
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