Card for a 19yo

Janie4Now

YorkshireBoy wrote: »

You haven't grasped what I'm saying have you!?

If the OP has already paid in £5,640 this tax year, he cannot pay any more money (not even a penny!) back into his cash ISA until April 6th next year.

You haven't grasped what I'm saying, have you?! I take money out of my ISA and pay back in at will without penalty provided I don't go over the annual limit. My understanding is that what counts is what you've paid in over the year, not in one amount.

dazza.mk

YorkshireBoy wrote: »

You haven't grasped what I'm saying have you!?

If the OP has already paid in £5,640 this tax year, he cannot pay any more money (not even a penny!) back into his cash ISA until April 6th next year.

Although he makes comments in the OP re: "Not being able to save the amount by May" so presumably any repayments will go against next year's allowance

and OP, perhaps you are saving too much in your ISA? Not meaning what you are doing is the wrong thing, but to have some instant access savings for your car insurance and the like (then if the quotes come out cheaper than expected you will still be able to top op your ISA, rather than saving the cost in your ISA and having to withdraw it).

JimmyTheWig

Janie4Now wrote: »

You haven't grasped what I'm saying, have you?! I take money out of my ISA and pay back in at will without penalty provided I don't go over the annual limit. My understanding is that what counts is what you've paid in over the year, not in one amount.

You two might be saying the same thing. YorkshireBoy is right. I'm not sure if you are or not, Janie.
You cannot, for example, pay in £1000 a month as that would take you over the limit you are allowed to pay in in a year.
You cannot pay in £5000, withdraw £3000, then pay in £3000 as that would take you over the limit you are allowed to pay in in a year.
You can pay in £3000, withdraw £1000, then pay in £1000 as that would only be a total of £4000 going in, which is within the limit.

JimmyTheWig

Janie4Now wrote: »

Better than him borrowing at a hideous interest rate anyway!

Agreed. Even if the OP ends up having to pay tax on his savings interest, it is better than paying high rates of interest on the credit card.

YorkshireBoy wrote: »

I think Grumbler's point was that the OP is highly likely to have already subscribed this year's allowance (£16K at 19 years old would indicate there's been a substantial amount deposited this financial year?).

Not necessarily as the OP's ISA has been going for 8 years.

YorkshireBoy

JimmyTheWig wrote: »

Not necessarily as the OP's ISA has been going for 8 years.

I didn't think you could have a cash ISA until 16 years old? Not familiar with 'junior ISAs', but a quick google shows they were only launched last year?

So wouldn't the OP have started from nothing in his ISA 3 years ago when he turned 16?

UsetheFORCE

Long thread but if you need 3k by May, take it out of your ISA nearer the time.

What interest rate are you getting on the ISA???

If say 3% gross at a Basic Tax rate of 20%, an equivalent interest rate of 2.4% net is paid in an instant access account paying 3% gross, a loss of 0.6% per annum which on 3k over a year is only £18...a lot of hassle for a small amount.

I wouldn't be surprised if you can get a Instant Access Account which pays MORE net than your ISA is paying gross.

Apart from the tax ringfencing, a lot of ISA's are crap...

Janie4Now

JimmyTheWig wrote: »

You two might be saying the same thing. YorkshireBoy is right. I'm not sure if you are or not, Janie.
You cannot, for example, pay in £1000 a month as that would take you over the limit you are allowed to pay in in a year.
You cannot pay in £5000, withdraw £3000, then pay in £3000 as that would take you over the limit you are allowed to pay in in a year.
You can pay in £3000, withdraw £1000, then pay in £1000 as that would only be a total of £4000 going in, which is within the limit.

Thank you, Jimmy . What I should have said as well, though, is that the OP needs to check the rules for his particular ISA!

JimmyTheWig

YorkshireBoy wrote: »

I didn't think you could have a cash ISA until 16 years old? Not familiar with 'junior ISAs', but a quick google shows they were only launched last year?

So wouldn't the OP have started from nothing in his ISA 3 years ago when he turned 16?

Maybe my fault for believing what the OP wrote...

rwhunited wrote: »

an ISA I originally had with the Halifax and moved over to Santander, as this is about 8 years old

I assumed that it was some sort of Junior ISA, but again I know nothing about them myself.

nathand_2

BugsyBrowne wrote: »

Sorry but I'm not buying any of that.

Fair enough. I was simply offering my opinion and detailing a little of my own experience.

SuperHan

Janie4Now wrote: »

Thank you, Jimmy . What I should have said as well, though, is that the OP needs to check the rules for his particular ISA!

They are the rules for ALL cash ISAs... You can only pay in a maximum of £5,640 REGARDLESS of how much money you take out.

So regardless of what ISA he has, he cannot take out £3,000 and repay it before April unless he has paid in less than £2,640 in the past eight months (and numbers say, chances are this isn't the case).

If your ISA allows you to take out thousands of pounds over and over and then pay them back in so that your total deposits go over the £5,640, you're going in to tax evasion territory. The bank may well let you do this, but it is YOUR responsibility to make sure that you don't, no matter what cash ISA you hold.