newbie - need advice on cash lump sum

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bowlhead99 wrote: »

innovate is right you can only pay into 1 ISA in a tax year but you and wife can pay into two between you. If you max them before 5 April, you will get another allowance on 6 April 2013 with the new tax year so you can between you put in another two ISA allowance's worth in then. This was what jimjames suggested back in post #2.

Your wife's money doesn't really need to be in an ISA if she is not paying any income tax anyway, but it's probably worth it in case she becomes a taxpayer at some point in the future. If you don't use this year's allowance you lose it forever.

And banks generally offer some of their best rates through ISAs because you are limited to putting only ~5k per tax year in, so the interest bill for them is not going to be very high. Whereas they couldn't afford to give you the same attractive rate on an instant access account with hundreds of thousands in it.

many thanks, sounds like the best plan....although I wish I didn't look at caravans over the weekend!:mad:

atush

Now see, impulse spending can be a problem with savings such as Cash ISas and savings accts.

If you are prone to big splurges, I would invest some of this money into additional pension.