September - should I put money in my ISA or savings?!

therealslimcj

Hi

I am just about to begin stoozing, and have an ISA. Unfortunately i have not been able to put a lot of money into my ISA so far so I have most of my tax free allowance still available.

Bearing in mind it's nearly september, would it still be worth it to put my stoozing money (about 2.5k) into my isa? Or should I just put it in a savings acc for better value?

Cheers

sparklymessygirl

Can't really see the problem with putting it into the ISA - you will get a good return and most don't have any penalties for withdrawing when you need to. It really is just a savings account with a good rate of interest (because it is tax free). You will be hard pressed to get such a rate of return after tax elsewhere.

Sparkly

isofa

Totally agree with Sparkly - always stuff it away in an ISA first up to the 3K a year maximum, and move it to a better rate ISA if yours is paying less than the market leaders, as you want to maximise your return on the 2.5K!

Only then, once your ISA limit is used up should you consider non-tax efficient accounts.

LittlePiskey

I'd say go with the ISA as you're not paying any tax on your interest then - make sure there are no penalties for withdrawal etc though!