LISA question please.

Vet

Just do it at the end of the year i.e. transfer £4k in March to get the full 25% bonus in April Good luck!

kimplus8

ValiantSon wrote: »

It sounds like you don't have substantial savings elsewhere, so you aren't going to end up paying any tax on the interest that you earn. It therefore doesn't make any sense to use an ISA for the monthly deposits during the course of the year. You will earn more interest by using a non-ISA account (as bowlhead99 was suggesting). Even in an easy access savings account, you can earn more than the 1.25% your ISA is paying (current best is 1.4%). If you use interest paying current accounts, or regular savers, then you can earn even more - up to 5%. Why would you use an ISA in this situation?

N.B. Most regular savers lock your money away for a year, but Santander (5%) and Nationwide (5%) allow you to withdraw the money before, without penalty. Although nowhere near as good a rate, Leeds Building Society (2.3%) also allow you to withdraw money from their regular saver, without penalty.

The short answer is , I don't know. Ive not had savings before and find it all terribly confusing. TBH it all just overwhelms me. I just got the isa because my mum said they are the best. I honestly don't know what I'm doing which is why I asked the Lisa/Isa question in the first place.
:eek::eek:

ValiantSon

kimplus8 wrote: »

The short answer is , I don't know. Ive not had savings before and find it all terribly confusing. TBH it all just overwhelms me. I just got the isa because my mum said they are the best. I honestly don't know what I'm doing which is why I asked the Lisa/Isa question in the first place.
:eek::eek:

No, ISAs are not uniformly the best option. In your circumstances you can earn more interest, without tax worries, in non-ISA accounts.