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First ISA

Have some cash to save, considering an ISA, if I take one now , for the full allowance, would I get a full years interest or just interest from march till April. Would then take another one for next year. Sorry if a stupid question , but never had savings before. thanks in advance.

Comments

  • ColdIron
    ColdIron Posts: 10,143 Forumite
    Part of the Furniture 10,000 Posts Hung up my suit! Name Dropper
    You only get interest for the time the money is in an account so March till April
  • But it would still be a good idea to use this year's allowance, so you shelter some money away from the taxman (interest) and can do it again right after 6 April.
  • jimjames
    jimjames Posts: 18,980 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    But it would still be a good idea to use this year's allowance, so you shelter some money away from the taxman (interest) and can do it again right after 6 April.

    If you may want the money in the short term then there are plenty of options outside an ISA that pay substantially more interest than ISAs do so an ISA isn't the automatic best option. It is better to pay tax on 5% interest than get 1% tax free.
    Remember the saying: if it looks too good to be true it almost certainly is.
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