ISA basics please

Bella79

Hi

Just wonded if someone could give me basic info on isas what i know so far

you can have one a year (so is that 2 if your married one in each name)
u fill it up to max

errrmmmmm when u say tax free what do u mean ? for eg if i put 100 pound into a normal savings i can draw 100 back so how do i get taxed on it ??

Sorry for being dim but i just need some basic info in laymans terms

x

Lokolo

The interest is taxed.

So £100 in a savings account at 5% for a year.

You will get £5 interest tax free.

You would only get £4 when its not in an ISA (20% taxed)

Ian_W

errrmmmmm when u say tax free what do u mean ? for eg if i put 100 pound into a normal savings i can draw 100 back so how do i get taxed on it ??

You don't get taxed on the capital but any interest earned is taxable and unless you're a non-taxpayer and fill in the correct form the bank withhold 20% as the norm. A higher rate taxpayer is liable for a further 20%.
So in an ISA the interest earned is free of tax.

Boudica

Hi everyone

I'm also after some Isa info. I'm wanting to get one to save up for something. So, here's my queries and maybe someone could help.

1. Does having an ISA affect getting Child Tax Credit or other benefits?

2. If you want more than one, can it be put into a childs name if they are under 18 and is it legal to do that?

3. Can you have only one ISA per year?

4. Which is best, instant access or a 90 day access?

5. Can I have one where I can pay in monthly/weekly?

Thanks in advance.........this is new to me but I really want to save for something special and I have no idea where to begin. Financial things are a bit of a minefield for me

LittleVoice

2. Minimum age is 16.

3. Only one at a time, per person, per year. But you can move to another provider if the individual provider rules allow.

4. If you are saving up for something and will know when you will need the capital returned, then if a 90-day access pays a higher rate of interest, go with that.

5. Such accounts are available.

You may find more detail in stickies on this board.

Sorry I don't know the answer to your first question.

dzug1

1. Does having an ISA affect getting Child Tax Credit or other benefits?

pass

2. If you want more than one, can it be put into a childs name if they are under 18 and is it legal to do that?

You can't have more than one and a child cannot have one (not sure of age limit)

3. Can you have only one ISA per year?

Yes though it can be split between cash and shares

4. Which is best, instant access or a 90 day access?

Best in what way?

5. Can I have one where I can pay in monthly/weekly?

Monthly certainly - not sure about weekly though given that with many you can pay in at any time I can't see why not

Boudica

Hi and thanks everyone.....i'll try to clear up as I haven't written very clearly.

I'm wanting to set up 2.....one in my name and one in my daughters name. She's had a policy matured and wants to put the money away.

4. I was thinking in interest terms........i will be looking to withdraw in about 5 years time. I'm wanting to save up for a little trip to see a few concerts around the world

I'm not sure about the shares thing either cos of the way the shares market is at the moment. Don't know if that's a good or bad move

I was toying with the idea of having my child tax credit paid straight into the account but not sure either if that's a good move. I find it all very complicated...sorry

LittleVoice

Boudica wrote: »

I was toying with the idea of having my child tax credit paid straight into the account but not sure either if that's a good move.

I'm not sure that it is possible. I don't know what amount your child tax credit might amount to but remember that you can't pay in more than £3600 in a year. I think you would be better having the credit paid directly to a current account and then dispose of it from there.