Any point in an ISA?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
2 replies 1.2K views
WLITCWLITC Forumite
1K Posts
Part of the Furniture 500 Posts Name Dropper Photogenic
✭✭✭
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Looking for some advice. I'm planning to save between £15k-£20k for a deposit towards a house over the next 2 years. Only currently have a £1k and thats sitting in my Barclays e-savings account. Based on £15k-£20k for just a 2 year period, is the best option an ISA or for this amount and time frame, would a high interest savings account be better?

BTW, for simplicity I was thinking of doing the ISA (if thats the way foward) with Barclays, as I can do it via my online banking. The only question I have is that I had an investment ISA with Barclays Stockbrokers (which is seperate to the high street bank) in 2012/13, but has such a small amount of shares (less than £500) that it seemed to be costing me more in fees etc so I sold the shares and closed it off around July 2013. Does the fact that I've had an investment ISA in the tax year 2013-2014 mean I can't take out a Cash ISA now?

Replies

  • lisyloolisyloo Forumite
    27.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    Does the fact that I've had an investment ISA in the tax year 2013-2014 mean I can't take out a Cash ISA now?

    Only if you used the entire £11520 allowance.

    What rate of tax do you pay?
    All you need to do is find the highest paying account.
    For ISAs you do not need to deduct income tax.
    For non-ISAs you need to deduct 20% of the interest in income tax.

    If the non-ISA is higher even after the tax then that's mathematically better.
  • innovateinnovate
    16.2K Posts
    ✭✭✭✭✭
    I would say "no" in your case. Have you read the savings article on the main site?
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals