Open a mini cash Isa or not?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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united4everunited4ever Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have about £22 000 in my bank accaount earning only 3.5% interest. I'd like to earn as much interest as possible on this. However, I'm buying a flat at the end of June and will need all of this money as a deposit. Is there any advantage to me for opening an Isa before the deadline on April 6th. I doubt I'll be able to put much or anything into an isa after my mortgage payments kick in from July:(

Replies

  • missilemissile Forumite
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    You ought to get a bank account paying better interest rate, but there is very little point in opening an ISA if you will be drawing the cash out in June.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • frugalmacdugalfrugalmacdugal Forumite
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    Hi,

    don't think it is really worth your while shifting stuff now.

    Well done on the savings and having something towards your flat, good luck.

    If you want to turn your £22,000 into £110,000 quickly, and buy a penthouse, you could get 4/1 Clelsea for the league. :rotfl:
    Y'all take care now.
    happy0207.gif

  • jamesdjamesd Forumite
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    You can make an exra 100 in interest by the end of June by opening a high interest savings account and moving the money there.
  • frugalmacdugalfrugalmacdugal Forumite
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    Hi,

    good thinking, just for a wee bit of paper work, maybe even not, just a few clicks, extra ££££'s.

    You should be able to get a least 5%, somewhere.
    Y'all take care now.
    happy0207.gif

  • united4everunited4ever Forumite
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    Thanks for the replies, will probably just look for a higher interest bank account for now, as for the Chelsea fan, well I don't fancy losing £22 000 on a long shot like Chelsea:rotfl:
  • Gordon_the_MoronGordon_the_Moron Forumite
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    Can I just add my bit... I am very drunk but what I say makes sense (I think and I hope)

    The first £6k could be earning 6.5% net in an ISA (instead of 5.8% gross, which works out at about 4.5% net in a savings account) as quickly as you can get £3k for this tax year (and then £3k on April 6th) into either an ING direct or Barclays ISA and the rest into the HSBC or Alliance and Leicester E-savings offering.

    Getting 6k of your 22k into an ISA will make a difference by June but more important than the tax efficient state of the ISA the best ISA pays better than the best savings account.

    Yours drunkenly but helpfully (I hope)
    Da Moron
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
  • frugalmacdugalfrugalmacdugal Forumite
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    Hi, Gordon the Moron,

    well for a drunken moron, I think your advice is very good, no stupid spelling mistakes nor bad punctuation, wish I was as wise when I am drunk. :beer:

    Take care.
    Y'all take care now.
    happy0207.gif

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