Newbie

chufocus

Hi Martin, I hope your well. Can you help me please.
I currently have £350.00 to save every month and a lump sum of £5000.00 to do something with.
What do you suggust?
Thank you.

Aegis

Are you looking to save or invest? Are you already using your ISA allowance for this year?

chufocus

Hey Aegis, what’s the difference between saving and investing? With regards to ISAs I believe that I could deposit 3k before April and another after, is that right? What kind of return can I expect? Who do I open an ISA with? What is the difference between a Cash ISA and a mini one?
Thanks for your help.

Stavros_3

Yes, you can put in the maximum now 3k before April and next April the limit goes up to £3,600 so put that amount in then if you can. For best Isa's have a look at the list below

http://forums.moneysavingexpert.com/showthread.html?t=401374

chufocus

Thanks Stavros, so….
Now:-
Open a mini ISA account with company A and deposit 3k
April 2008
Deposit another 3k in company A
Balance now at 6k
April 2009
Deposit another 3k in company A
Balance now at 9k

I thought that there is a balance limit with ISAs – is this not 7k.
What happens next?
When can I open another ISA?

I hope this is clear.
Thanks for you help.

CLAPTON

The difference between saving and investment is that saving mean putting your money in a bank/building society/national saving etc and you then earn interest on the money. You initial money (capital ) is safe.

Investment means putting your money into stocks and shares. They may pay dividends to you. The value of your investment may go down as well as up so in much more risky than savings.

ISAs are tax free rappers that allow you to avoid tax on savings/investments

At the moment you can open each tax year

either have up to 7k in stocks and shares (a Maxi ISA)

or 3k in a cash mini ISA and 4k in a mini stockand shares ISA.

The rules are changing next year (2008) and will become a little more flexible.

So if you do this year on year you can build up a substantial amount of money either cash and /or in stocks and shares that are protected from tax.

chufocus

Thanks so much.
I like the idea of the BMW Performance ISA at 6.7% fixed. I can do this as I would not require the 3k within the 12 months.
This feels great. :j

Am I right in reading that I could start a cash isa or share isa or a maxi isa in any given financial year?

If this is true, having opened a cash isa, can I now open a share isa this year?

Thanks all. :T

jem16

As you have opened a Mini Cash ISA you can still open a Mini S&S ISA and use the £4k allowance for it.

You cannot open a Maxi ISA though.

chufocus

Thanks for that Jem16.
Any recommendations? I have 2k left to deposit into a S&S ISA followed by £166 monthly. Is that right – can I do that?

Thanks.

jem16

Depends on whether you know what you are doing in choosing your own funds or not?

Most people here would recommend an ISA from a fund supermarket like Hargreaves & Lansdown..

With £4k to invest you would be looking at around 4 funds spread across different sectors. If you used your £2k as a lump sum - £500 in each fund and then around £285pm over the next 7 months.

chufocus

Hi Jem, hmmm S&S ISAs appear a little daunting. Perhaps I shall leave well alone.
What other options do I have? I have admittedly another 5k and due to receive around 6k in December. What can I do? Should I just consult with a financial advisor?

Thanks.