Maybe A Stupid Question To Ask !!!

spooky25

Hi all

Im looking into placing £3000 in to a tax free ISA and was wondering about 2 major things.

Q1. As everybody knows we are currently half way through the finacial year,but if I were to place the full amount now i.e £3000 pounds into to a tax free ISA would the interest be that of a full year or only the interest from the time I placed the amount into the tax free ISA ???( reason I ask is that some pay monthly interest others yearly.

Q2. I have heard about an online bank called icici and its high savings account high save account is this a tax free Isa account ??? and has anybody got an account with this bank ?

I hope that the way iv'e worded it explains everthing manythanks
to ya all

spooky25

manic_saver

Answer 1.

If you don't already have a isa, you can open one. Then open another one at the end of the finaicial year. Unfortunately you won't get the full year as you never put it in from the start of the finiancial year, so you will have around 12 weeks of interest which should amount to £38 at a 5.5% account taking for e.g.

Answer 2.

Not sure about icici, never banked with them, but if its an isa with them you won't have to pay tax. If on the other hand its a high % account, guessing 6.5% you will come out with around 6.0% net, assuming you were a non high tax payer. I am sure someone else will enlighten more about icici. What i've heard some people have had problems banking with them.

spooky25

thanks manic appreciate that will look into it with a bit of caution :beer:

Lavendyr

The ICICI account is not an ISA. It pays 6.41% gross currently, but if you are a basic-rate or higher-rate taxpayer, tax will be deducted from that.

neilp

I use ICICI and find them good, though I know others have had problems. I would recommend using your £3,000 annual cash ISA allowance before depositing in a high interest instant access account such as ICICI.