Do you know your ISA from your elbow?

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Former_MSE_Debs
Former_MSE_Debs Posts: 890 Forumite
in MoneySaving polls
Poll started 9 Apr 2013
A brand new tax year has started, allowing all UK over-16s to save £5,760 in a cash ISA where the interest is tax-free (see {Top Cash ISAs} for full info). Yet many still find them confusing.

Which of the options in this week's poll is nearest to your cash ISA scenario?

Vote in this week's poll


Did you vote? Why did you pick that option? Are you surprised at the results so far? Have your say below. To see the results from last time, click this.
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Comments

  • torbrex
    torbrex Posts: 71,340 Forumite
    Combo Breaker First Post Rampant Recycler Hung up my suit!
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    I am ISA wise and although I have not saved in one for the last couple of years due to a low income, I have been keeping up with the best rates by moving my existing pot around the bases.
  • thelawnet
    thelawnet Posts: 2,577 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
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    Cash ISAs are pretty rubbish in current low interest environment.

    I use my share ISAs instead.
  • stevemcol
    stevemcol Posts: 1,666 Forumite
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    I say this every time the ISA question comes up.....shouldn't there be an option for "I overpay / offset my mortgage instead".
    Apparently I'm 10 years old on MSE. Happy birthday to me...etc
  • counting_down_the_days...
    counting_down_the_days... Posts: 116 Forumite
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    I don't have a lot to save so find I'm better using current accounts, even paying the tax, basic rate, I get a better interest rate. Last year I had Santander 5% up to £2500 & I've just signed up to Nationwide's equivalent.

    I do have an ISA which I'll transfer, but will only get around 3%. Also have some other savings which I try to keep in a good easy access account. My main monthly savings are in company share save & SIP schemes.
  • catmonkey85
    catmonkey85 Posts: 70 Forumite
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    I hope Martin posts these results on his Facebook to show all of the people who were so negative when he was discussing ISAs. They were saying he should help those who can't save, not those who have savings. After nearly 6000 votes in this poll, only 13% say they can't afford to save anything.
  • Firer
    Firer Posts: 1 Newbie
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    I have some money to save. But I need easy access to it. I have a savings account that pays 2.8% that I opened in October. Do I open a easy access isa or put the rest of the money in the savings account that pays 2.8% before tax?
  • chocaholicmanc
    chocaholicmanc Posts: 63 Forumite
    First Post First Anniversary Combo Breaker
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    One of my biggest regrets is that I didn't start saving earlier and taking advantage of the fact your ISA rolls over. Just think how much I could have in savings if I had!!!
  • stevemcol
    stevemcol Posts: 1,666 Forumite
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    Firer wrote: »
    I have some money to save. But I need easy access to it. I have a savings account that pays 2.8% that I opened in October. Do I open a easy access isa or put the rest of the money in the savings account that pays 2.8% before tax?

    Assuming you're a basic rate tax payer, then the net interest on your savings currently is 2.24%. There are a couple of instant access ISAs around with a slightly better rate. On that basis alone, I probably wouldn't bother, unless you are talking massive amounts of savings.
    But the other advantage of saving in an ISA, provided you don't withdraw quicker than you save, is that once the money is there, the interest will always be tax free. If (when) interest rates pick up in the future, assuming ISA interest rates improve more quickly, your savings will work better for you.
    Apparently I'm 10 years old on MSE. Happy birthday to me...etc
  • Muzzy0
    Muzzy0 Posts: 1 Newbie
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    This might be the wrong place to post this but I was wondering if anyone with more experience with ISAs knows if it might be worth waiting for a ~3% easy access ISA to come onto the market or just jump in with Chesire's 2.30% ISA?
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Name Dropper First Post First Anniversary
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    Muzzy0 wrote: »
    This might be the wrong place to post this but I was wondering if anyone with more experience with ISAs knows if it might be worth waiting for a ~3% easy access ISA to come onto the market or just jump in with Chesire's 2.30% ISA?

    There's a Savings and Investments board here. Personally I doubt interest rates are going to increase any time soon.

    Spent all my cash which was in an ISA on up-coming masters, just got some investments that I don't want to sell left.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
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