Ooh, brain hurts - please help!

Alfietinker

I want to open my first ever savings account!!!! (well chuffed) but am getting very confused with all this ISA stuff. I understand what ISAs are and my allowances etc but perhaps somebody could give me some advice?

Basically I hope to sell my car this week and make £2200 profit. I'd like to invest this in an ISA this tax year and would take out a mini cash ISA.

Then next tax year, I want to carry on paying £100 a month (£1200 a year) into another/same cash ISA as if I were still paying the repayments on my car. Sounds simple.

But what should I do if I don't manage to sell my car before the 5th April? £2200 + £1200 = over my £3000 allowance. So Should I invest the £2200 in a share's ISA and take out a separarate cash ISA for my monthly payments?

Any advice much appreciated, fingers crossed I sell the car...

carnet

Only you can answer this as it all depends on your time horizon and tolerance to risk.

Mini Cash ISA's and Mini Stocks and Shares ISA's are two entirely different animals.

You could always put the £400 into an Internet A/c paying relatively high interest.

Alfietinker

Thanks for replying - that's a point. Then I could put the 'excess' into the ISA in the next tax year! Never thought of that!

I don't really want to take too much risk - it's so rare I have any savings I wouldn't want to lose any now!

Thanks for your answer!

dunstonh

If you were to think about a scale of 1 to 10 with 1 being lowest risk, 2 being highest. Cash ISAs would be at 1. Equity ISAs begin at 4 and go through to 10 and have thousands of funds available to fit in that range.

So you need to quantify the risk you are willing to take. "Dont want to take too much risk" doesnt eliminate equity ISAs. It just narrows your options.

FairyElephant_2

If you don't sell your car in time, and want to put the 3k into next year's ISA afetr Apr 6th, you could put your £100 month into Halifax Regular Saver at 7% (open with up to 250 and add up to 250 every month)......