what to do? ISA n00b

ukbandit

ok,

never been in a position to save, and to be honest am not in the position now either...!

however, i have remortgaged my house, which includes a sum (£8000) to do some work on the house, most probably loft conversion.

i dont expect to so that for the next 6 months though, as i need to look around, decode if i'm going the solar panel route etc.

given i know nothing about ISAs, i was tempted to put some into 2 seperate ISAS, one for my wife and one for me.

thing is, if i can, should I put the £3000 for each of us into a mini isa, e.g. with A&L and when the time comes, take it out to pay for the conversion?

if i put in £3000 for each of us this tax year (before APril) can i open another 2 mini isas and start saving in there too?

i.e.

2005 tax year
£3000 - Me
£3000 - Missus

2005 tax year
£0 but would be saving into there
£2000 - i.e. from the £8000

is there any penalty for taking the money out after only a couple of months?

thanks.!

macca64

No penatly for taking the money at any time, assuming you have an instant access ISA and not a notice account.

However you can only deposit £3,000 per tax year, ignoring withdrawals. Eg. deposit £2,000 withdraw £2,000, can still only deposit a further £1,000.

ukbandit

thanks,

i think i mgight therefore do the following:

A&L direct ISA

before April
£3000 - me
£3000 - missu

after April
£however much is left.

given my current account where it would sit gives 0.96%....i think i may be a liitle bettter off!!

thanks

Bandit

macca64

If your only earning 0.96% on your current account, I'd consider switching A&L pay 5% at the moment.