Natwest first reserve or cash ISA?

samperry209

Hey guys

Just spoke to a guy at natwest who has just recommended me to getting a cash ISA so ive just signed up but im wondering have i done the right thing??

Im only gonna put around 18 quid in savings a week LOL

So shall i use the cash ISA or first reserve?

Which will be more beneficial so to speak?

Im still in education ,18

book12

Go for the ISA. It pays more interest and it's tax free.

samperry209

book12 wrote: »

Go for the ISA. It pays more interest and it's tax free.

Thanks for that

anyone else?

Baldur

If you're not a taxpayer, go for whichever account pays the best interest if you're likely to dip into your savings in the short term. You can submit an HMRC form to the savings institution in order to claim interest tax-free if your earnings are lower than the prescribed tax allowances.

Cash ISAs are ideal for saving for the longer term, especially for higher-rate taxpayers, as their tax-free status is ongoing year after year, so you can be earning tax-free interest on interest (as well as each new tax year's capital) for as long as the ISA scheme lasts.

samperry209

Baldur wrote: »

If you're not a taxpayer, go for whichever account pays the best interest if you're likely to dip into your savings in the short term. You can submit an HMRC form to the savings institution in order to claim interest tax-free if your earnings are lower than the prescribed tax allowances.

Cash ISAs are ideal for saving for the longer term, especially for higher-rate taxpayers, as their tax-free status is ongoing year after year, so you can be earning tax-free interest on interest (as well as each new tax year's capital) for as long as the ISA scheme lasts.

i think the ISA is the way to go then

Kavanne

If you must go with Natwest an internet ISA will get you more interest (E-ISA) but have a look at Martins savings articles by clicking on the link at the top of the page.