Overpaying my mortgage.

Carl2510

Newbie_John said:

Not really sure what joint account here helps with apart from visibility for both of you how much you have.

But things to consider in general:
1) best savings accounts:
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
2) best ISAs:
https://www.moneysavingexpert.com/savings/best-cash-isa/
3) tax on savings, depending on your salary, it could be 0% (if below personal allowance), it could be 20%, it could be 40%.. you may need to do tax return every year if you get a lot of interests otherwise it will be taken of your salary as higher tax (if above allowance)
4) with joint accounts - if you earn £500 a year, that goes £250 off your allowance and £250 of your partners
5) with ISAs, each of you can open one in a tax year and put there up to £20k between April - April
6) some of the best savings accounts don't accept joint applications - but you can create in your name and set interests rates to be paid monthly to the joint account
7) and the more obvious - easy access vs. fixed - but that's generally well described in the links above

We are getting a joint account so we’ve both got access to the money as she’s currently holding most of it in her bank but getting it to me she can only transfer like 1K a day so I’d rather it be in an account where we can both access it at least.

we don’t plan on opening any shared ISA’s or savings accounts just an account so we can both get at the money if need be.

Thanks.

Carl2510

Just so I’m sure and on the right track.

if I was to open an ISA say tomorrow, would I only get interest for 3 months Jan-March and then my ISA would end? And I’d have to then start a new ISA on the 6th of April.

or does it mean if I put 20K into a fixed rate ISA I’d get my maturity on December next year But would count as this years tax year

and then if I was to open one in April that would count as a new one.

Thanks.

Newbie_John

If you open now a fixed ISA and put £20k there it will last till December next year, and then it will be converted to sth default, or you can convert it to sth else of your choice, or transfer out to another provider - not impacting your yearly allowance (just need to make sure that new provider allows for this).
From April 2024 you can open another ISA and put up to £20k there again..

So after 10 years you can have £200k in ISAs - if you topped them up to max each year.

Or if it's flexible one, you can top up every year another £20k.

Carl2510

Newbie_John said:

If you open now a fixed ISA and put £20k there it will last till December next year, and then it will be converted to sth default, or you can convert it to sth else of your choice, or transfer out to another provider - not impacting your yearly allowance (just need to make sure that new provider allows for this).
From April 2024 you can open another ISA and put up to £20k there again..

So after 10 years you can have £200k in ISAs - if you topped them up to max each year.

Or if it's flexible one, you can top up every year another £20k.

Thanks John.