My first ISA

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  • ps_live
    ps_live Posts: 143 Forumite
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    Thanks for the advice everyone. I know I'm on the right track, and I'm rapidly becoming addicted to this site. Just reading the posts on here have really galvanised me to get the most out of my money :D

    Its a real testament to martin AND all of you guys that this advice is free, impartial and above all REALLY helpful.

    I'm sticking around ...

    cheers :beer:

    Pete
    Debt-free as of 01.10.08. I will never have a CC again and I'm "in the black" :beer:
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    Pete, I know this is going to mess you around a bit now but............

    As you wife currently doesn't work, and *if* you can afford to save a regular amount each month you might want to consider putting your money into the Halifax Regular Saver account. This allows regular deposits of up to £250pm and is paying interest at 7%. As your wife is not working, and therefore is not paying tax you can claim this interest tax free (complete the Inland Revenue form R85 - if you go into a Halifax to open the account then ask them for the form and to help you to complete it - its not complicated).

    I know this is not using your ISA allowance but if you saved £100pm for 12 months in the Halifax you could then 'dump' the contents of this into a ISA next FY and continue your savings.

    cloud_dog

    btw the R85 option for the wife is valid on any account paying interest (we've got ours with ING 5% in the wife's name only)
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • lipidicman
    lipidicman Posts: 2,598 Forumite
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    ps_live wrote:
    If you are married, I'm sure you'll understand :rolleyes:

    I've lived with my GF for five years, but luckily for us we earn similar amounts (she is a little ahead) so we can keep our finances quite separate.

    I think if you are making an effort to save and your wife's money comes from you then she could probably find ways to save a little of the housekeeping - if you like it could stay separate, ie still hers, but then as a couple you would have a little more security. Make it a joint effort!

    Please dont take this as me telling you what to do, I dont have enough info for that! Again, well done for starting your savings
  • ps_live
    ps_live Posts: 143 Forumite
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    Please dont take this as me telling you what to do, I dont have enough info for that! Again, well done for starting your savings

    No worries there, I can take it ;)

    About three years ago, we had a joint account that everything came out of. With us both dipping in, it became unmanageable to the point where every month, I had to increase the overdraft a little. I took drastic action and separated "housekeeping" and "bills" from the joint account by creating new accounts. Everything had a budget, and my wife knew exactly what she could spend, as she was the only person using the "housekeeping" account. It worked :T

    With change of job, I find myself with a little more left over every month. I'm happy enough to "right-off" any savings that could be made from the housekeeping, like I say, it gives my wife independence, and she rarely asks for more.

    cheers :beer:

    Pete
    Debt-free as of 01.10.08. I will never have a CC again and I'm "in the black" :beer:
  • ps_live
    ps_live Posts: 143 Forumite
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    cloud_dog wrote:
    As you wife currently doesn't work, and *if* you can afford to save a regular amount each month you might want to consider putting your money into the Halifax Regular Saver account. This allows regular deposits of up to £250pm and is paying interest at 7%. As your wife is not working, and therefore is not paying tax you can claim this interest tax free

    Yay .. sussed the quote thingy ;)

    Thanks cloud_dog, I'll take a look at that, one step at a time :o

    cheers

    Pete
    Debt-free as of 01.10.08. I will never have a CC again and I'm "in the black" :beer:
  • lipidicman
    lipidicman Posts: 2,598 Forumite
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    With the Halifax idea, it wont mature until after the end of the tax year - so you wont be able to get it into an ISA - this will be an issue if your wife returns to work and becomes a taxpayer - short term gain at 7%, long term loss of your ISA allowance - its tricky to maximise your returns!
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    Lipidicman, I don't really see any downside as the amounts we are talking about are well below the allowance, so come next FY they could take out two ISA to put the money it.

    Again, other than loosing the ability to utilise this years total allowance (which isn't going to happen in this scenario) there is very little downside. Finish the twelve month Halifax saver, start an ISA (06/07) transfer the monies into it, or into two, and continue saving in the ISA - where's the downside?

    If it had been the full £3k then I would agree.

    cloud_dog
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
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