ISA tax savings calculator
How much tax will I save by taking out an ISA?
Protect and Prosper!SimplyFinance seeks to inform and support consumers through their personal finance journey. We have loads of guides, calculators, and the quickest and easiest access to free online quotes in the areas you need:
- Get LIFE INSURANCE now! Provide for your loved ones financially in the event that you should die unexpectedly.
- Need a LOAN? For those times when you caught short, or have a larger purchase you wish to make and pay off in instalments.
- Get rid of your DEBT! Managing debt can be scary - empower yourself and start your road to debt-freedom now with a debt management solution.
- FREE MORTGAGE QUOTE. Purchase your first home, investing in property, remortgaging to get the best rate - there is a host of information out there, and SimplyFinance will guide you to find the right solution for you, with the lowest rates.
- Get INCOME PROTECTION Now! Illness, injury, or redundancy can strike, leaving you unable to work or pay the bills. Income protection insurance can replace a proportion earnings, so that you can meet your financial commitments and cover your living costs.
An Individual Savings Account (ISA) can provide you with an ongoing savings plan, because you save not only in the tax year when you enter the money into the account but for as long as you want afterwards too. The ISA Tax Savings Calculator can help you to work out the total returns on your ISA savings (or investments, in the case of a Stocks and Shares ISA), if you keep your money in the ISA wrapper over a number of years. As a caveat, you can remove money from the wrapper in an easy access ISA, but you cannot then put that money back in again.
In the context of your current year's allowance (10,200 GBP in total, of which 5,100 GBP can be put into a cash ISA), if you put in 3,000 GBP and then withdraw 1,000 GBP, the maximum you can enter into your cash ISA for that year is still only 2,100 GBP from then on. In the context of a previous year's ISA, if you have used up your full cash ISA allowance and then decide to remove half of that money from the ISA wrapper, you could not then top up that old ISA account at a later date. The ISA Tax Savings Calculator is a great tool for working out the advantages of using an ISA rather than a savings account to store your hard-earned cash for a rainy day!