ISA vs. Savings 29 April 2007 at 11:23PM in Savings & investments 5 replies 712 views

dlevene

Hello all

I want to save about £240 a month for 3 years. That's £3120 a year, but I heard that you can only save £3000 with ISAs? I don't mind just using a regular savers account, but then what would I be looking at in tax?

Thanks for helping out a newbie!

dang

Go for the ISA, the limits go up next year to i think £3800.

dunstonh

It's £3000 per tax year. Not in total. The allowance amount is subject to change in the budget and is increasing next year as dang says.

dlevene

That's good to know! Oh, the other thing I forgot to add was that I probably won't need access to my money while I'm saving it.

I've found a couple of really high interest ISAs, but the only one that is open to 18 year olds is the Abbey Super ISA (8.1%) and you have to open a "Guaranteed Growth Plan" that seems really complicated.

So even if I go for an ISA, I'm still a bit stuck on which to choose.

dlevene

I've just found the ISA board, sorry! I think if the limit on ISAs will go up enough I won't bother with the savers, so I'll post further questions on that board.

Sorry again, and thanks!

mleonard79

You'll probably find this out for yourself over on the ISA board but just in case you don't - the Abbey Super ISA is not a good deal. Check out Kazza's great list of the current best ISAs HERE.

Regards

Michelle