Can anyone help with basic ISA questions?

emilysexton89

Hi all,

I am due to move in to my first home in April after many years of saving. My savings are about to deplete from £55,000 to £3,000, however I am eager to remain disciplined with saving after I move home, but not really sure where to start.

I anticipate after all bills to have around £700 left over each month, from which I would like to "bank" £200 of for the longer term, and keep the remaining £500 in a more readily accessible account if I need it.

I was thinking of opening a Stocks and Shares ISA to put the £200 in, perhaps a cash ISA for the remaining £500 which I can take from if a big purchase comes around.

This is what I just cant get my head around despite reading articles until I am blue in the face:

1) Is it possible for me to open 2 ISAs in the same tax year?
2) I have been contributing to a Help to Buy ISA since 2015 with the final contribution being made in March, does this complicate anything?
3) For the stocks and Shares ISA, am I being daft to get one through Hargreaves? I don't know why I just get the feeling I am not "wealthy" enough for that
4) What would you do!?

My income is £31,000 and have just turned 30. Really just wanting to do the best thing.

Thanks x

Alz1986

You can have s&s ISA + HTB ISA so long as they dont exceed 20k.

HL are expensive. Check AJ Bell.

I would build a lump sum to invest with e.g. 1k /2k and then make monthly contributions.

fun4everyone

emilysexton89 wrote: »

1) Is it possible for me to open 2 ISAs in the same tax year?

Yes, as long as they are different types. If you have already opened a cash ISA this year you could open a stocks and shares ISA somewhere else for example.

2) I have been contributing to a Help to Buy ISA since 2015 with the final contribution being made in March, does this complicate anything?

The tax year runs April-April so any contributions you have made inside this tax year (of which March is part of), will count towards the £20,000 allowance you can make per year into ISA wrappers. The allowance will reset for everyone when the new tax year begins in early April.

3) For the stocks and Shares ISA, am I being daft to get one through Hargreaves? I don't know why I just get the feeling I am not "wealthy" enough for that

Investing is not just for the wealthy, that is a misconception. Hargreaves Lansdown have a very good website and they have very good customer service. These are all good things for a beginner like you. However they also charge more than most and have lots of fees for all sorts of things. They are expensive. There are probably better options for you out there.

4) What would you do!?

It's hard to say without knowing everything. Congratulations on owning your first property. You should probably build some sort of emergency reserve - property can require sudden maintenance and you might need a couple of months living expenses for whatever reason. After that it is certainly wise to get into investing at your age, you will thank yourself for it big time when you come to retire! You need to read a lot, try https://www.monevator.com. Don't fall for marketing crap (Hargreaves has a lot of it!) and remember most websites have a hidden agenda. Researching with the aim of investing a small amount each month at the end of it is a very good idea imo.

xylophone

You might try

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa?cmpgn=PS0617UKPABIS0001&gclid=EAIaIQobChMI_5LT1tzg4AIVxojVCh1DrAR6EAAYASAAEgJkgvD_BwE&gclsrc=aw.ds

https://monevator.com/using-vanguard-lifestrategy-funds-life/

Have you ever had a Nationwide Flexdirect account?

Or a TSB Classic plus current account?

If you have never had a Flexdirect account, you might open one and also a TSB Classic Plus.

Deposit £1500 in each.

Set TSB to paperless.

Set up same day SO for £1000 from TSB to NW and from NW to Nationwide.

Deposit another £1000 in NW as soon as possible.

Set up regular monthly saver with NW.

If you are close to a Virgin money store, consider opening a regular monthly saver.

Think again about NW at the end of the year's privilege 5%.

Other savings rates here

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html