Cash ISA Query...

ggecko

Hi there people! - I'm new and will be staying!:D

Right then, decided I need to save money for the future just a quick question.

Say if I start with £3k, and I put this in the ISA, and put in £200 a month, will I really have a total of roughly £38k after 10 years. At 6.05%.

This is what the calculator at the bottom of the page on moneysavingexpert says. - Obviously at the rate of 6.05%.

Can I also start it up with £1, (on some i can), and put in the £200 a month for 10 years, and end up with roughly 32k as stated on the calculator. - This just seems to good to be true!

I understand on the higher regular saver accounts you have to give them a hefty warning/notice before you take it out, however I guess I can live with that. So, £200 a month, for 10 years = £30kish, or £28k with a fixed rate. Not bad at all. - Am I right on this one guys?

Link to calculator, bottom of the page :
http://www.moneysavingexpert.com/savings/best-cash-isa

Lavendyr

Hello

I'm not sure from your post whether you know this already, but you can only invest a maximum of £3000 in a mini cash ISA in this tax year (i.e. to 5th April 2008). In the 2008-2009 tax year, you can invest a maximum further £3600 in that tax year. So if you start with the £3k, you'd only be able to start adding £200 a month from April.

The rate will not always be 6.05%, because interest rates could rise and fall, and at the moment they do look set to drop a little, so I would work from a lower average interest rate - that way you will be pleasantly surprised if the interest rate does end up being higher.

If you can start with the £3k, it is worth doing so, because then it is a) earning interest straightaway, b) protected from the taxman sooner and c) makes the most of your 07-08 tax allowance.

Mikeyorks

sjohal2006 wrote: »

I'm new and will be staying!

You've been here since April 2006 ...... so the newness has worn off?;)

At that time - you said you were 14? You may now be 16 - which is the minimum age to open an ISA - as you were advised on your first thread.

By all means open one - but where do you have the accumulated money since you first posted?

ggecko

Hi there, nice question, made the majority off of eBAY. Also a summer job I had from work experiance. I can open account this February.

I was just planning on starting from £1, and putting in £200 a month. (£100 from EMA), £100 from mum/part time job whilst at college). When I need more, I will put in only £150 for example.