new to ISA's

kev.s

i have spare money each month and wonder is an ISA available to pay into each month or is it a lump sum thing? in laymans terms how do these work as i've never had one. can i set up a DD to pay fixed amount monthly? and is the money locked for a period of time?:beer:

CLAPTON

kev.s wrote: »

i have spare money each month and wonder is an ISA available to pay into each month or is it a lump sum thing? in laymans terms how do these work as i've never had one. can i set up a DD to pay fixed amount monthly? and is the money locked for a period of time?:beer:

a ISA is just a savings account that is tax free

some are instant access
some are for a specific time period
some allow irregular or regular payments
some only allow one payment
some require you to have another a/c with the bank

Loughton_Monkey

http://www.moneysupermarket.com/savings/cash-isas/

Marco12452

Regular savings accounts tend to offer more interest than ISA's, so if you putting in a defined amount each month this could be the answer. Some banks currently offerin 8 %, but will only be for 1 year. The amount you can save is usually about £300 per month.
So if this offers £3600 savings over the year, plus the 8% on the growing amount, why not do this for year 1. In year 2 open a new one and put the money from year 1 into an ISA at that point.
See - http://www2.firstdirect.com/1/2/savings/regular-saver-account;jsessionid=00009E_t211uaQXWQaNfw5C2Wni:11qmo514p, but check out other banks too to satisfy yourself that you have the product you want.