Ready to start saving

$17mma

Hello all

This is an exciting time for me because next week I would have paid off my debt below and would have received my annual bonus of around £4.5k

As it is coming up to a new tax year this is a perfect time for me to not only clear outstanding debts but to invest in an ISA before the end of the tax year.

Therefore I need help with the following

• Find a mini-cash ISA
• How much of my bonus can I invest into a mini cash ISA before the end of this tax year?
• Once the begining of the new tax year can I conitnue to add to the mini ISA or will I have to open another ISA or a regular savings account?

In addition I have just remember that I curently have another ISA that has been running for some time and has a balance of £1085.84 in it. Would it be best for me to leave that be as it is coming towards the end of the financial year and reap the benefits if there are any. Or move it to the new mini-cash ISA that my bonus will be going into?

I also need advice on the best regular saver for my two little ones so that I can take advantage of this 10% interest on savings on regular saving accounts I have been reading about. Any ideas on the best one so far?

Finally, how can I make my children benefit from their tax free gifts from family and friends?

All feedbackis appreciated.

ms_london

Well done Emma, thats fab news!! You must be so excited! Are you doing anything to celebrate? What a nice reward too to get your bonus at this time!!

$17mma

I am soo excited and am counting down the days. Only five days to go and everything will be paid off and I will be debt free!!!
Ahead of my target as well I might add by two and half weeks:eek: . It has been killing me but I have been throwing £1675 per month at my CC but it has all been worth it. From now on my money will be MINE!!! :j :j :j

I have you to thank as well Ms_London, reading your journey last October made me kick mysef into touch.

grumbler

$17mma wrote:

Find a mini-cash ISA

Best rate is now 5.2% (variable includes bonus of 0.70% until 30.04.07 ) - A&L Direct ISA . Halifax offer 5% on a range of ISAs including variable and fixed options.

How much of my bonus can I invest into a mini cash ISA before the end of this tax year?

£3K. Hurry up, don't wait for the money, start opening ISA now.

Once the begining of the new tax year can I conitnue to add to the mini ISA or will I have to open another ISA or a regular savings account?

You can continue or open another ISA or transfer the ISA to other provider. Using good regular savings account is the best strategy when you use them to save a lump sum to put into ISA at the end of the year. However, they mature usually after 12 months and you must open some right away so that it mature before the end of the next financial year. In your case you already have £1.5K for next year ISA, so you could save another £1.5K without regular saver or in addition to regular saver(s).

In addition I have just remember that I curently have another ISA that has been running for some time and has a balance of £1085.84 in it. Would it be best for me to leave that be as it is coming towards the end of the financial year and reap the benefits if there are any. Or move it to the new mini-cash ISA that my bonus will be going into?

Move it. You don't lose anything if you move.

I also need advice on the best regular saver for my two little ones so that I can take advantage of this 10% interest on savings on regular saving accounts I have been reading about. Any ideas on the best one so far?

Halifax. You can open two accounts and save up to 2*£100 p.m. : Best Child Savings: Use your child for a sneaky tax free allowance. Your OH can do the same.

Finally, how can I make my children benefit from their tax free gifts from family and friends?

Do you mean money that you want to save?

$17mma

grumbler wrote:

Best rate is now 5.2% (variable includes bonus of 0.70% until 30.04.07 ) - A&L Direct ISA . Halifax offer 5% on a range of ISAs including variable and fixed options.

Thanks will take a look at tehm this weekend

£3K. Hurry up, don't wait for the money, start opening ISA now.

Ooops!! will head to the banks this afternoon!! any recommendations?

You can continue or open another ISA or transfer the ISA to other provider. Using good regular savings account is the best strategy when you use them to save a lump sum to put into ISA at the end of the year. However, they mature usually after 12 months and you must open some right away so that it mature before the end of the next financial year.

Does this mean that you only pay into your ISA jst before the end of the tax year and keep the money in a high earning regular saver throughout the year? totally confused.. sorry

In your case you already have £1.5K for next year ISA, so you could save another £1.5K without regular saver or in addition to regular saver(s).

Move it. You don't lose anything if you move.

I will open my ISA today contact them and move it on Monday.

Halifax. You can open two accounts and save up to 2*£100 p.m. : Best Child Savings: Use your child for a sneaky tax free allowance. Your OH can do the same.

This Halifax account you mention is this one of those 10% on savings accounts? so I can open an account for each child and pay a max of £100 in each? and my OH can do the same? will check that out this afternoon as well.

Do you mean money that you want to save?

yep.. save save save :j

Grumbler thanks for your help you have a world of knowledge. Please see my comments above just to make sure that I have it right.

ta :A

$17mma

[STRIKE]
What about the Alliance and Leicester regular saver that is at 10% paying in upto £250 per month. Can I open those for the kids? will they be charged tax on that?
[/STRIKE]

Ahhh I see you have to be 21 and open an accoun with them also..

grumbler

$17mma wrote:

Does this mean that you only pay into your ISA jst before the end of the tax year and keep the money in a high earning regular saver throughout the year? totally confused.. sorry

You can pay into ISA anytime. However, ISAs pay max. 5.2% now. If you don't have a lump sum to pay into ISA you can get 10% gross (8% net) with regular savings account during a year before moving money into ISA. For other regular savings accounts see Regularly Beat the Best Savings Accounts article and Barclays 10% Regular Saver account. 7% gross is 5.6% net, 8% gross is 6.4% net.

yep.. save save save

Children can earn up to almost £5K interest tax-free on savings that doesn't come from parents. You should register accounts to receive interes gross (form R85). Keep some records for origins of the money. On parent's money there is £100 yearly limit for each child and each parent. Be careful with this limit.

$17mma

I have just read this from one of Martins posts..

Only one mini-cash ISA per year. You can only have a Mini Cash ISA with one provider in any tax year – you can’t split it. However you can hold cash-ISAs from different years with different providers.


Does this mean that every new yr i can open a new ISA with a new provider and keep my previous ISA from older provider still running for another tax yr?

If I am right the in theory you could have numerous ISA's as you like as long as they are with different providers?

grumbler

$17mma wrote:

Does this mean that every new yr i can open a new ISA with a new provider and keep my previous ISA from older provider still running for another tax yr?

If I am right the in theory you could have numerous ISA's as you like as long as they are with different providers?

Yes. However, if the old ISA is good, what's the point in opening a new one with different provider? If the new ISA is better than the old one(s), what's the point in keeping the old ISA(s) instead of transferring it to the new provider? Many people (myself included) are sometimes lazy to transfer old ISA, but this is not the best strategy not to consolidate ISAs at the best place.

$17mma

Have spoken to Parents and sister who help a lot with childcare. As we pay them to sit the kids and collect them from school etc.

They have agreed to save the money they get for helping us with the kids and set up regular savers through the halifax for the kids, earning the 10%

So both my mum and dad will be opening an account tomorrow for each of our two children. :j

So that is the kids taken care of.

All I need to do now is to find an ISA for my bonus and a good regular saver for the remaining 1.5k which I will be doing tomorrow.

grumbler

$17mma wrote:

All I need to do now is to find an ISA for my bonus and a good regular saver for the remaining 1.5k which I will be doing tomorrow.

If you want to use £1.5K to 'drip-feed' a regular saver, you need to find a good instant-access account too. A&L Online Saver is one of the best at the moment.