ISA and Moneybox

LightKnow

Hi everyone, hope everyone doing well,

I have a question about Moneybox , currently I have instant ISA saver with Halifax which I try to save up in every month and I was looking into opening moneybox Shares ( I liked the idea it takes my spare change and uses it) but am I allowed to use moneybox and Halifax together ? I was reading you can only use one place to save money in a tax year ?

Please someone clear it up, am not the brightest person, I been trying to learn new stuff in the new year to help improve my money

Appreciate all advice

colsten

You cannot put money into (subscribe to) more than one of the same type of ISA each tax year. You can, however, subscribe to different types of ISA in the same tax year - your subscriptions just must not exceed £20,000 per tax year.

For example, you can pay £10,000 into your Halifax cash ISA and £10,000 into a Stocks and Shares ISA with Halifax, or with any other provider. It's down to you how you split your money, and it's your responsibility to ensure you stay withing the overall £20k limit.

Eco_Miser

Biil wrote: »

I was reading you can only use one place to save money in a tax year ?

You can save money in lots of places, but only four of them can be ISAs - one each of cash, S&S, Lifetime (LISA) and Innovative Finance (IF), with a maximum of £20,000 between them per financial year.
Actually, it's even more complicated than that, as you can transfer any of your ISAs to a different provider - but still only one of each type at any time with current year's subscriptions.

For most people, cash ISAs have no benefit over similar non-ISA savings accounts, as the first £1000 of savings interest is zero-rated for basic-rate taxpayers.

badger09

colsten wrote: »

You cannot put money into (subscribe to) more than one type of ISA each tax year. You can, however, subscribe to different types of ISA in the same tax year - your subscriptions just must not exceed £20,000 per tax year.

For example, you can pay £10,000 into your Halifax cash ISA and £10,000 into a Stocks and Shares ISA with Halifax, or with any other provider. It's down to you how you split your money, and it's your responsibility to ensure you stay withing the overall £20k limit.

Confusing (unusual for colsten)

Did you mean

"more than one of each type of ISA each tax year":cool:

colsten

badger09 wrote: »

Confusing (unusual for colsten)

Did you mean

"more than one of each type of ISA each tax year":cool:

thanks for spotting my deliberate :rotfl: mistake! I meant "more than one of the same type of ISA ". Corrected now. Apologies for confusion.

LightKnow

So if my understanding is right, the allowance I have I can split that in the tax year but as long as the isa are different. So cash ISA , help to buy or interest based is one type and any isa you are earning on e.g shares is a different type

Any recommendations or suggestions for stock and share ISA ? I thinking using moneybox since I don't have huge savings or income, I like the idea you can use spare change to invest or save. Anyone with experience on how good moneybox are ?

afis1904

How much do you save a year? Might be quite a bad idea to put your cash into an ISA if you're a basic tax payer with less than £1000 interest. Even if you need the tax free bit of the ISA, definitely switch away from Halifax asap

colsten

afis1904 wrote: »

How much do you save a year? Might be quite a bad idea to put your cash into an ISA if you're a basic tax payer with less than £1000 interest.

If the ISA is a LISA or S&S ISA, it's unlikely to be a bad idea. If it's a cash ISA, then yes, it might not make much sense, particularly if you can get better interest in an instant access or Regular Saver account. Overall though, I don't think it does any harm to use a cash ISA for instant access cash, so long as you have a handle on the interest rates.

afis1904

Not really any reason to use a ISA with a lower interest if you can use a normal easy access account that's easier to open and has higher interest

LightKnow

@ afis
@colsten

my yearly saving isn't great, but am trying to change that, if mange well, I can put away 250 a month .

So would there be a better place to save my money ? I been with Halifax for years and was put on instant isa saver and never really looked into it. But apart from saving for tax free benefit , I usually take out X amount out for days I may need it, but am trying to change this

My goal is save up and try invest by putting some cash away bit by bit, reason why moneybox looked interesting

This year am trying to make changes.

afis1904

You won't earn £1000 (basic rate) or £500 (higher rate) in interest anywhere so for cash savings I'd suggest you have a look at the best instant access accounts (they're all on the website)