Really need some help..:-S

Cherryjack

Sorry to ask but im really trying to get this right in my head.

I have the full ISA allowance to deposit this month. Im currently using one with my bank..which is 2.75%

so in a years time how much money would this have made in interest? does this then get taxed because im then over my allowance? Do you get a much better interest rate with an ISA than a regular savings account?
Im seeing lots of offers at the mo.. am i best off moving the money after april to a better deal?

Thank you, hope you can help:beer:

Lokolo_2

Cherryjack wrote: »

Sorry to ask but im really trying to get this right in my head.

I have the full ISA allowance to deposit this month. Im currently using one with my bank..which is 2.75%

Ok, have you already put the money into the ISA? If not, then consider another ISA provider, as some of them are offering up to 3.5% instant access, such as The AA!

Cherryjack wrote: »

so in a years time how much money would this have made in interest?

Use this calculator to work it out, just fill in the blanks!
http://www.moneysavingexpert.com/savings/best-cash-isa#calculator

Cherryjack wrote: »

does this then get taxed because im then over my allowance

No, you won't pay any tax on interest earnt in an ISA, as the interest does NOT count towards the annual ISA subscription limit.

Cherryjack wrote: »

Do you get a much better interest rate with an ISA than a regular savings account?

I am not sure if you meant a Regular savings account, as in one where you contribute a certain amount monthly, or just a standard savings account. If you meant the former, sometimes ISA rates are lower than what these offer, however you can only deposit up to a certain amount into Regular saving accounts per month.

If you meant the latter, then it depends on the market really, sometimes ISA's have a higher headline interest rate than normal savings accounts, but you have to remember that the tax-free interest of an ISA can be worth quite a bit more than taxable interest of a normal savings account!

Cherryjack wrote: »

Im seeing lots of offers at the mo.. am i best off moving the money after april to a better deal?

Thank you, hope you can help:beer:

You don't necessarily have to wait until April to move your current ISA, you can transfer it at any time, providing that you aren't locked into a fixed rate ISA (although you could still transfer and face early closure penalties in this case!)
If you do decide to transfer your existing ISA then look for an ISA provider that accepts transfers in, not all ISA's do!

From the new tax year you'll be able to deposit a further £5640 of new money into a Cash ISA, as well as transfer your existing Cash ISA to another provider, which you should do to get better than that 2.75% you mentioned earlier! Hope this all makes sense! :j

Cherryjack

Thank you so much , thats a wonderfull response. You really have helped me x

Lokolo_2

Cherryjack wrote: »

Thank you so much , thats a wonderfull response. You really have helped me x

You're very welcome, hey I didn't expect you to read and respond so quickly!

Cherryjack

lol newborn baby keeping me awake I've never understood ISA's but thankfully with the help..im getting there and its making sense now

Ive already set it up.. but will move it across in April