ISA or savings account

[howfartospar]

Sorry for the somewhat simple question

I currently have around 35k in a cash ISA paying 2.7% interest.

am i better to move this is a savings account paying 5.5% when you factor in the tax implications?

You would be best off using an interest rate calculator to work it out.

Do you know what your personal savings allowance is? If your move money out of your ISA you will be charged 20% tax on some of your interest.

Try this https://www.landc.co.uk/calculators/interest-calculator/

There are Cash ISAs paying 5.45%. So you may be able to transfer to one of those. Then the money is still inside the ISA wrapper.

Transfer it to a stocks and shares isa, to use money market funds who are offering 4%+.

An Isa is only useful if you have enough savings to pay interest over £1000 a year or £500 if you pay higher rate tax.
Otherwise you can get better rates.

@howfartospar have you considered investing it in an index tracker?

I just put your fund into a Hargreaves Lansdown calculator and it forecast your £35k to be worth £163k in 30 years.

Calculator: https://www.hl.co.uk/tools/calculators/regular-investing-calculator

Obviously investments can do down as well as up, but I think historically 20 year plus index trackers have been very reliable.

If you can keep it within the ISA wrapper, assuming you are not also taxed by a second country, it gives you options for tax free income and gains in the future. You should be able to do much better than 2.7% without risking your capital if you can lock up the money for 6-12 months or if you buy a short-term bond fund or even an individual short-duration gilt if you are comfortable doing that.