Open an ISA?

ashbart

My other half and I need to save for our wedding. Our plan is to put AT LEAST £300.00 away every month (our finances are joint) and the wedding will be in July 2009 and we want to start saving from May (at the latest) this year.

From what I gather, an ISA is the best way to go (please tell me if I'm wrong) but, I have a few questions -

1. As we may need to pay deposits, etc, on parts of the wedding - will we be able to draw the money out at any time, immediately?
2. Just before the wedding, will we be able to take the WHOLE amount out straight away with no problems?
3. As we are allowed £3,000 per financial year each, do we need to open up separate ISA's or can we open a joint one with a total allowance of £6,000.
4. We will start our ISA with £1 (don't have any substantial amounts to start with) so, what is the best ISA? I've seen Natwest have a 5.75% AER. (PS- I will not put my savings into Egg as they have insulted me!) I would prefer one with Monthly interest. I thought Natwest was best as we bank with them and I could see all of my accounts on-line at once. Feel free to tell me I'm wrong!

Any help would be greatly appreciated and if I don't seem to understand what I am doing - please tell me!!!

Thanks in advance for replies!

ashbart

Sorry - another question:

Let's say I put £3,600 (new allowance) in an ISA in April 2008, do I have to withdraw it all by April 2009 to continue saving for the next year or can you keep putting in £300 per month forever (providing the allowance stays the same) and your ISA will just grow and grow - obviously only gaining interest on the £3600 each year? OR - do you have to open up a new ISA each year to start again?

So confused.....!

CLAPTON

you can open an ISA in april 2008 and save up to 3600 between 6th april 2008 and 5th april 2009.
They can't be joint so you need to open one each.

You can keep the ISAs indefinitely .. no requirement to close them.

So after 6th april 2009 you can either continue to save in your existing ISA (3,600 or whatever the new limit is at that time) or open a new one so having two.

In either case both year's ISAs are paid interest tax free and the interest (if accumulated in the a/c) too.

martinman3

The NatWest e-ISA 5.75% rate is good and is only 0.35% less than the Icesave ISA at 6.1%.
Because you will be adding £300 per month the interest rate difference will not matter much as you will only earn £6.30 less in annual interest than what you would get if you put it in the Icesave, assuming difference between rates stays constant.