Cash ISA Savings Calculator

FAQs

What does Martin Lewis say about cash ISAs? Martin Lewis often highlights that while cash ISAs have tax-free interest benefits, the introduction of the Personal Savings Allowance (PSA) means many people won't pay tax on savings outside an ISA unless they are higher-rate taxpayers or have significant savings. He suggests comparing rates across all savings accounts, not just ISAs, to find the best returns, considering that some regular savings accounts offer higher interest rates.

How much interest will I earn on a cash ISA? The interest you earn on a cash ISA depends on the annual interest rate of the ISA and how much you have deposited. Interest rates vary between providers and can range from around 0.1% to over 1.5% for more competitive accounts as of my last update in April 2023.

Can I put £20,000 in a cash ISA every year? Yes, as of the 2023/2024 tax year, you can deposit up to £20,000 into ISAs (this limit covers all your ISAs combined, including cash ISAs, stocks and shares ISAs, innovative finance ISAs, and Lifetime ISAs) each tax year.

Can I put £50,000 in a cash ISA? No, you cannot put £50,000 in a cash ISA in a single tax year due to the annual ISA limit of £20,000. However, you can reach or exceed this amount over multiple years through additional deposits and interest earned.

Should I get a fixed rate ISA now or wait? Deciding whether to get a fixed-rate ISA now or wait depends on current interest rates and your expectations for future rates. If you believe rates will rise, you might wait; if you think they will stay the same or decrease, locking in a rate now might be beneficial. It's essential to consider your financial situation and goals.

Is it worth having a cash ISA anymore? Having a cash ISA can still be worth it for savers who are higher or additional rate taxpayers, those who have used up their Personal Savings Allowance, or those who anticipate higher savings income in the future. For many, the right choice depends on the interest rates available in ISAs compared to other savings products.

Can I have £40k in an ISA? Yes, you can have £40k or more in an ISA by accumulating contributions over several years and through interest earned on your savings. However, you cannot exceed the annual contribution limit in a single year.

How much interest does £20,000 earn in a year? The interest earned on £20,000 in a year depends on the interest rate. For example, at a 1% interest rate, £20,000 would earn £200 in interest in one year.

What is the highest paying ISA at the moment? The highest-paying ISA rates vary and depend on the market and specific product offerings. Fixed-rate ISAs generally offer higher rates than instant access ISAs. Rates can range significantly, so it's essential to shop around and check current offers.

Where should I put £20k in savings in the UK? Where to put £20k in savings depends on your financial goals, risk tolerance, and how accessible you need the money to be. Options include high-interest savings accounts, cash ISAs, stocks and shares ISAs, or other investment vehicles. It's crucial to compare rates and consider speaking with a financial advisor.

Can I have 2 ISA accounts? Yes, you can have multiple ISA accounts, including more than one type of ISA (cash ISA, stocks and shares ISA, etc.), but you can only contribute to one of each type of ISA up to the combined annual limit in each tax year.

What happens if I put more than £20,000 in my ISA? If you accidentally contribute more than the annual ISA limit of £20,000, your ISA provider should notify you. The excess amount might need to be removed, or your account could lose its tax-free status for the contributions over the limit.

Where should I put £50k in the UK? Where to put £50k depends on your objectives and risk appetite. Consider diversifying across cash savings, ISAs, investments, and possibly pensions. It might be wise to consult with a financial advisor for personalized advice.

What are the downsides of a cash ISA? The downsides include potentially lower interest rates compared to other savings or investment options, and the benefits may be less significant for those who don't pay tax on savings interest due to the Personal Savings Allowance.

What is the disadvantage of an ISA? The main disadvantage is the potential for lower returns compared to more risky investments, such as stocks and shares ISAs or other investment vehicles, and the impact of inflation on cash savings.

Is there an ISA for over 60s? There isn't a specific ISA for over 60s, but they can choose from the available ISA types based on their financial goals. Some financial products are marketed towards older savers, including fixed-term savings accounts or bonds.

Which UK bank has the best ISA? The best ISA provider can vary based on current interest rates, customer service, and account features. It's advisable to compare the latest offers from various banks and building societies.

What is the Halifax ISA rate? ISA rates at Halifax, as with other banks, fluctuate over time. You would need to check their current offerings directly on their website or in a branch for the most accurate and up-to-date information.

What is the best bank account for over 60s? The best bank account for over 60s depends on individual needs, including interest rates, account benefits, and how they plan to use the account. Some banks offer accounts with perks suited to older customers.

What bank has the best cash ISA? The bank with the best cash ISA changes as interest rates and promotions vary. Always compare the latest rates from multiple banks and building societies to find the best deal.