Home Home, Law & Money
Come and join our Support Circle, every Tuesday, 8 - 9:30pm! Limited spaces available! Sign up here

An ISA

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hi

Can anyone clarify to me what an ISA is? And if you have any experiences with having one? Just want info.
I think I want to open one just to have an account with a little extra cash on the side for future 'rainy days' because i have a feeling there will be a lot of them. I know I can only go up to about £5300 a year but I doubt I'll get that much anyway.
I already have a savings and current account with a different bank. The funds in them are rapidly declining.
:wave:

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    You can only deposit £5,300 a year regardless of what you take out. So if you put in £5,300 in May and take it out in July, you can't deposit again until the next tax year. So it's not a limit on how much you can have at any one time, if that makes sense?

    Other than that, I'm not sure there's much to say. Check interest rates and how much you need to start up with various banks. I couldn't see much difference between the major banks when I opened mine.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    piccolo wrote: »
    You can only deposit £5,300 a year regardless of what you take out. So if you put in £5,300 in May and take it out in July, you can't deposit again until the next tax year. So it's not a limit on how much you can have at any one time, if that makes sense?

    Other than that, I'm not sure there's much to say. Check interest rates and how much you need to start up with various banks. I couldn't see much difference between the major banks when I opened mine.

    So do you think it is worth it?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Probably, because there's a disincentive to withdraw.

    It's worth using your tax-free savings allowance.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    The savings interest you earn from ISAs is tax free, so if you're a tax payer with a savings account, it's usually worth making it an ISA one.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    The savings interest you earn from ISAs is tax free, so if you're a tax payer with a savings account, it's usually worth making it an ISA one.

    you know, I didn't even know tax was taken from bank accounts!
Sign In or Register to comment.