isa question?

t3zza36

hi all im a littleconfused about isa, i want to save £1000 per month, can i put this in a cash isa or not? wot are the best alternatives?
thnx

Baldur

You can currently subscribe a maximum of £5,100 per tax year (6th April to 5th April), so five and a (very small) bit months at £1,000 per month.

xrjtg

Regular savings accounts pay higher interest rates than instant access accounts, so are a good option if you're saving a fixed amount monthly and can accept possibly restricted access to your money for the year the account runs. They tend to peter our after a year, and multiple accounts would be necessary to house £1000 a month as they tend to have low deposit limits, but you can wash the same money through the system again the next year, holding in an instant access account until you can get it inside a regular saver. (A better option at the moment is Lloyds Vantage, but unless you already have a £5000 pot it isn't really suitable for you.)

If you pay income tax then you probably do want to use your £5100 cash ISA allowance for this year before 6 April, so make sure to factor that into how much you could commit to regular savers until then.

t3zza36

ok thnx for info

t3zza36

so can i open 2 seperate isa,s with different companies in the same year?

Baldur

t3zza36 wrote: »

so can i open 2 seperate isa,s with different companies in the same year?

You can open as many Cash ISA accounts as you like in a tax year BUT you can only pay that tax year's subscriptions (max. £5,100) into ONE of them.

You have an annual ISA allowance of £10,200, all of which can be subscribed to a Stocks & Shares ISA

OR

up to £5,100 of it can be subscribed to a Cash ISA, with any balance (up to the maximum of £10,200) being eligible to be subscribed to a Stocks & Shares ISA.

For a brief guide to ISA rules, see http://www.hmrc.gov.uk/leaflets/isa-factsheet.pdf

Catbells

Baldur wrote: »

You can open as many Cash ISA accounts as you like in a tax year BUT you can only pay that tax year's subscriptions (max. £5,100) into ONE of them.

You have an annual ISA allowance of £10,200, all of which can be subscribed to a Stocks & Shares ISA

OR

up to £5,100 of it can be subscribed to a Cash ISA, with any balance (up to the maximum of £10,200) being eligible to be subscribed to a Stocks & Shares ISA.

For a brief guide to ISA rules, see http://www.hmrc.gov.uk/leaflets/isa-factsheet.pdf

Does this mean you can have £5,100 in a cash ISA and £10,200 in a Stocks & Shares ISA? Am in process myself. Thanks.

Baldur

Catbells wrote: »

Does this mean you can have £5,100 in a cash ISA and £10,200 in a Stocks & Shares ISA? Am in process myself. Thanks.

Did you not read the bold OR?

You have an annual ISA allowance of £10,200, all of which can be subscribed to a Stocks & Shares ISA

OR

up to £5,100 of it can be subscribed to a Cash ISA, with any balance (up to the maximum of £10,200) being eligible to be subscribed to a Stocks & Shares ISA.

So if you subscribe only £4000 to a Cash ISA, you could also subscribe the balance of your annual £10,200 allowance (i.e. £6,200) to an S&S ISA.

Suggest that you read the HMRC link which I posted above.