Help!

ledhead

I'm saving up to move out with my boyfriend (we'll be renting) so I want to save up for a deposit and possibly a few months' rent. Where's the best place to put my money, in a high interest savings account or an ISA? Or are they the same thing? I'm totally confused! I'm looking at putting aside £50-£100 every month for the next year or so.

Plasticman

For this type of saving a mini cash ISA is likely to be your best option - assuming that you are tax payers. The ISA (in very rough terms!!) is a savings account where you do not need to pay tax on the interest earned. You can only pay in a maximum of £3000 in any tax year. If you are paying in £50 to £100 per month this won't be a problem as you will not reach the limit.

ledhead

Thank you! It looks like an ISA is the way to go. I am a complete ignoramus when it comes to all things financial so advice and help is much appreciated! Is it possible to have more than one ISA? Or are there regulations saying you can't because you'll be trying to avoid taxation? I'm just wondering in case I ever need to save for a house deposit in the future when I can actually afford a mortgage.

davidcampbell

yeah you can only pay into one isa in each tax year for the reason you suspect.

isas are not my thing either though and the above is about the extent of my knowledge on the subject. if you look around the site there will be some excellent advice from martin and others on isa products

DC

Plasticman

Don't forget though, you and your boyfriend can have one ISA each (so 6K per year saved in total). There is lots of info on this site - and if you have any more questions, ask!