isa vs nomal saving account

[mandimoo]

say i have X in an isa earning 1.55 but obviously nothing to taxman.... and i have the same amount in an ordinary account, earning 3.25%, but some of that will be taken by the tax man..... which account is best to put my money in? (i dont know if interest is compound or what and wouldnt know how to work it out even if i knew!) and is there an online calculation tool where you can work these things out?

[anniebird]

Look for a better deal for your ISA and transfer the balance to a new account. Make sure you do the transfer through the official channels so that you retain the Tax Free Status. The other account is paying a reasonable return given the current economic climate. Use this website to check on the available accounts http://www.moneysupermarket.com/money/

[dasherman]

If my maths is correct then the NET rate of interest on an ordinary account would be 2.60% for a basic rate taxpayer or 1.95% for a higher rate taxpayer.

A tool can be found here:
http://www.thisismoney.co.uk/savings-rates-con verter

As far as I know most savings accounts pay compound interest rather than simple interest.