ISA savings or joint account

LHDF

Hello
I have a cash ISA with Santander which has been in place since 2006 when I graduated with the idea of saving towards a house deposit. I currently only save £200 a month in this account which goes as a SO from my current account in another bank. Sometimes I have to take some money back out of my ISA to cover unexpected bills, but this is rare. Is this the best way to save my money? I would like to up the savings to £350 a month if it doesnt go over the limit?

My partner and I would like to have a joint account to save for our wedding. We will need to use the money in this account to pay for the wedding as the planning and organising goes along so would need a debit card. Is it possible to have an ISA for this or would it be better to have a normal joint account? Would our money be taxed in a normal account?

All these different accounts baffle me.

Thanks for your help

pressuredrop_2

ISAs are for individuals, allowance for this tax year is £5,340, tax-free.

Hard to beat if the rate is decent.

CLAPTON

check the interest rate you are receiving; if the ISA was set up in 2006 then it's likely to be about 0.1%

spikyone

CLAPTON wrote: »

check the interest rate you are receiving; if the ISA was set up in 2006 then it's likely to be about 0.1%

It certainly is, and if that's the case you should take out a new account that will accept transfers and transfer the money across - you will need to ask your new provider to do this.

Very few providers offer debit cards on this type of account though, but as long as you can bank online you should be able to move money across quite quickly - if you have a Halifax Direct Reward ISA (for instance - this is an account that allows transfers and has a relatively good interest rate) you can move money into a Halifax current account instantly.

Depending on when your wedding is, you should make sure you're aware of your account's terms and conditions too, all of the best-paying accounts come with an introductory rate that drops (usually) after a year, so when the time comes, transfer again!

LHDF

Thanks for all of your advice! If I transfer my ISA does that mean that my limit in the new one will be maxed straight away or will I still be able to save?

Baldur

LHDF wrote: »

If I transfer my ISA does that mean that my limit in the new one will be maxed straight away or will I still be able to save?

No, ISA transfers have no effect upon your annual allowance.

You can still subscribe the current tax year's allowance of up to £5,340 as well.