Help?

The_One_Who

I am a little confused, my head goes spinning when I think about banks and savings and anything along that line. I'm wanting to open an ISA but I don't really know anything about it. If it is a yearly interest account the interest goes in at the end of the financial year, regardless of when you open the account?

I'm a student and wanting to put some of my student loan into an account but is it possible for me to take some of the money out if I really need to? What about paying some more money in to it once it's opened, can I do that?

Finally, are there any tips about the best ones? I'd prefer to do it through a branch because I've never done internet banking before but I guess I could. Definitely don't want phone banking though.

baby_boomer

The_One_Who wrote: »

If it is a yearly interest account the interest goes in at the end of the financial year, regardless of when you open the account?

Each bank may have its own year end for interest. Ask when you open the account.

If you open an account on 1 May and the interest is on 31 December you will get roughly 2/3 x the annual quoted rate.

I'm a student and wanting to put some of my student loan into an account but is it possible for me to take some of the money out if I really need to?

Yes. But if you put in £2K (leaving £1K of your allowance) and take out £1K in the same tax year you still only £1K of your annual allowance left

What about paying some more money in to it once it's opened, can I do that?

Yes.

Finally, are there any tips about the best ones? I'd prefer to do it through a branch because I've never done internet banking before but I guess I could. Definitely don't want phone banking though.

If you exclude internet banking then you could lose out on the best rates. But postal accounts are also competitive and there aren't many compulsory phone account ISAs.

Branches are usually pants because they add costs to the provider.

The_One_Who

baby_boomer wrote: »

Each bank may have its own year end for interest. Ask when you open the account.

If you open an account on 1 May and the interest is on 31 December you will get roughly 2/3 x the annual quoted rate.

So I'm best to open it sooner rather than later to try and get the most interest?

If you exclude internet banking then you could lose out on the best rates. But postal accounts are also competitive and there aren't many compulsory phone account ISAs.

Branches are usually pants because they add costs to the provider.

With internet banking is it all done by direct debits? I'm sort of familiar with them so could maybe give internet banking a go if it's going to get me the best rates.

baby_boomer

The_One_Who wrote: »

So I'm best to open it sooner rather than later to try and get the most interest?

Yes.

Money you keep under your matress, in your pocket or in a taxed account is a drain on your future assets.

The_One_Who wrote: »

With internet banking is it all done by direct debits? I'm sort of familiar with them so could maybe give internet banking a go if it's going to get me the best rates.

You need a current account to set up an internet facility. But ISAs on the internet are not as common as other top accounts.

Link to best ISAs on MoneyFacts

The_One_Who

baby_boomer wrote: »

But ISAs on the internet are not as common as other top accounts.

What do you mean?

baby_boomer

More of the top ISAs can be opened and operated by post, as opposed to online, than other top paying accounts.

e.g. the top 5 ISAs on that MoneyFacts link I gave you don't need to be opened or operated via the internet.

Details of all types accounts can always be found on the internet, of course.

The_One_Who

Ah I see what you mean now. Thanks for the info. I'll look into it more tomorrow and hope my head doesn't burst from it all.