Is a Cash ISA worth it in 2022? - This Is Money

#Finance #Money #ThisIsMoney #Cash #CashISAs #ISAs #Banking #Banks #savingmoney

Once the darling of the savings industry, tax-free cash Isas have fallen out of favour in recent years. The accounts allow you to save up to £20,000 each year and pay no tax on any interest earned.

With rates low, many people may be questioning what the point of a cash Isa is? Lee Boyce talks to Anna Bowes from Savings Champion to see whether the tax-free accounts are worth bothering with.

[tungchuwong]

For the last tax year, my department opened a Cash ISA in January 23, and then deposited a new amount into the Cash ISA account in February (no more than 20, 000 pounds at the time).
Then in the second tax year, that is, in June 23, I injected a new amount into the same Barclays Cash ISA (total has exceeded 2 pounds). Barclays injected funds into 2 different tax years separately.

On the same day, in June 23, I opened an ISA Cash account in another bank, Lloyds Bank. That is, now I have opened a CASH ISA account in 2 different banks, but they have separated 2 tax years and different banks. Do this Got it? Thank you.

Opened the first ISA Cash Account in January 23, and deposited some amount in February.
In June 23 of the second tax year, the additional amount was added to Barclays.
Opened an additional ISA CASH account at Lloyds Bank in June 23.

[wicky]

but if ISA rates are less than half what a 1 year bond rate might be ( Yorkshire BS ISA 1.5% vs Oxbury Bank 1 year bond 3.91% ), even after taxation you're still far better off with the Bond and paying the tax

[Daniel-gseh]

If i earn £160, 000 but put 20k into my pension so I dont pay at the additional rate am I still an additional rate tax payer?