
Paying tax on interest from a savings account
If you earn interest from a savings account, you need to pay tax on that interest at the same rate as the rest of your annual taxable income.
Read more…Updated
With an Individual Savings Account (ISA) offering tax-free interest on your savings, it has been a popular option for people thinking about financing their futures. For the 2019/20 tax year, the tax-free ISA allowance is £20,000 for adults and £4,368 for juniors, with different types of ISAs available based on the purpose of the account.
Here, we run through a comparison of ISA providers and present how cash ISA accounts have performed for both adult and junior savers.
The graphs below plot the number of cash ISA account subscriptions, the overall amount subscribed in cash ISA accounts and the average amount per subscription.
Unsurprisingly, the values for junior cash ISAs is significantly lower than the corresponding adult accounts over the given time frames. However, the trends presented for adult accounts is often different than from junior accounts.
The overwhelming trend among adult accounts is that, up to 2018, the number of accounts has decreased while the overall subscription amount has remained fairly constant. As the final graph supports, there are fewer accounts overall but, of those people that own cash ISA accounts, more money is being transferred in.
Adult Cash ISA | Junior Cash ISA | |
---|---|---|
2012-13 | 11,682 | 204 |
2013-14 | 10,481 | 310 |
2014-15 | 10,288 | 365 |
2015-16 | 10,118 | 497 |
2016-17 | 8,480 | 569 |
2017-18 | 7,783 | 636 |
Adult Cash ISA | Junior Cash ISA | |
---|---|---|
2012-13 | 40,901 | 294 |
2013-14 | 38,821 | 431 |
2014-15 | 60,951 | 405 |
2015-16 | 58,694 | 522 |
2016-17 | 39,191 | 525 |
2017-18 | 39,801 | 517 |
Adult Cash ISA | Junior Cash ISA | |
---|---|---|
2012-13 | 3,501 | 1,442 |
2013-14 | 3,704 | 1,391 |
2014-15 | 5,924 | 1,110 |
2015-16 | 5,801 | 1,050 |
2016-17 | 4,622 | 923 |
2017-18 | 5,114 | 813 |
If you earn interest from a savings account, you need to pay tax on that interest at the same rate as the rest of your annual taxable income.
Read more…Discover how to find the best fixed-rate bonds and how they compare to other savings accounts.
Read more…Discover all you need to know about 5-year fixed-rate bonds, including how to find the best one for you.
Read more…Discover how fixed-rate cash ISAs work, how to find the best fixed-rate cash ISA and more.
Read more…Discover how a lifetime ISA works, how to find the best lifetime ISA and more.
Read more…If you’re over 50 looking for the best ISA rates, this guide will provide all the information you need
Read more…We explore the latest statistics in the world of cryptocurrency including who is and isn’t buying cryptocurrency, as well as who has made their millions off these virtual currencies.
Saving time on expense reports and streamlining your cash flow are just a couple of the many perks you could enjoy with a business credit card. Compare interest rates and check your eligibility today.
Want to buy Bitcoin but don’t know where to start? This comprehensive guide provides step-by-step instructions on how and where to buy BTC in the UK.
Elon Musk’s influential Twitter activity has shifted the value of several companies and cryptocurrencies by almost $12 billion on average.
The New York-based trading platform is not yet available in the UK or Europe, but here are the UK’s leading alternatives.
Looking for a uk alternative to Robinhood? We’ve found some similar platforms to Robinhood that let you trade US stocks from the UK.
Find out the best pension drawdown for different sized pension pots and different investing aims. We’ve compared the different providers.
Find out all about the Legal & General pension, including the funds available, the ready made portfolios and the fees involved.
Find out what we thought of the Wealthsimple pension, including details on fees, funds and the features in the three different tiers.
Find out more about the Nikkei 225, some companies that make it up and how you can invest in the Nikkei 225.