ISA good for student?

glamgoldchic

I'm a student hoping to go to university next year. I have about £1500 in a savings account and get about £200 a month wage into a current account. I do not pay tax.

The savings account has a good rate of interest (5% or so) because it's for under 18s. I am now over 18 but they haven't made me transfer.

Should I get an ISA? I may need my money in the savings account next year, but I may not if I would make money putting it in an ISA.

Please give me some advice!

Thanks, Anna

jem16

My student sons both had ISAs. You may not pay tax now but you probably will in the future. At that point you will start paying tax and anything in your ISA will be exempt from tax.

As long as the ISA rate is higher than an ordinary savings account I would say yes open an ISA.

glamgoldchic

Thank you very much!

Bobolink

Beware of putting money in that you may have to take out though - remember that every penny you put in is taken from your annual £3000 allowance - it doesn't matter whether or when you withdraw it, so if you're putting money in, make sure it will not be needed till 5th April each year

tom188

Bobolink wrote:

Beware of putting money in that you may have to take out though - remember that every penny you put in is taken from your annual £3000 allowance - it doesn't matter whether or when you withdraw it, so if you're putting money in, make sure it will not be needed till 5th April each year

Or at least, you will not be able to replace it until after the 5th April each year ( if there's nothing going back in it wont matter).