ISA's again!

littleD

I opened an Egg ISA this year with £1.00 and intended to put in the allowed £3,000 for this tax year, however, I've noticed the Lloyds ISA at 6.5% fixed rate and was wondering whether I would be better off to put making the £3,000 up to £9,000 and putting this straight into that one and forget the £3,000 into Egg for this year completely. Would this be allowed and do you think this would be better move. in other words I won't be taking advantage of this years tax free allowance but would it work out more profitable to put the money into next years Lloyds ISA. My husband is putting his £9,000 into a Lloyds ISA as well by the way. Now apart from that we have about £11k left over, where do you all think the best place to put this, for this to earn a bit too? Don't really need access to it so should I keep it one one place or split it up? Also can afford to put around £500 up as savings per month, should it go into a regular saver or is there a better option, sorry so many questions but a bit of a dunce when it comes to finance.

alastair_h

littleD wrote: »

I opened an Egg ISA this year with £1.00 and intended to put in the allowed £3,000 for this tax year, however, I've noticed the Lloyds ISA at 6.5% fixed rate and was wondering whether I would be better off to put making the £3,000 up to £9,000 and putting this straight into that one and forget the £3,000 into Egg for this year completely. Would this be allowed and do you think this would be better move. in other words I won't be taking advantage of this years tax free allowance but would it work out more profitable to put the money into next years Lloyds ISA. My husband is putting his £9,000 into a Lloyds ISA as well by the way. Now apart from that we have about £11k left over, where do you all think the best place to put this, for this to earn a bit too? Don't really need access to it so should I keep it one one place or split it up? Also can afford to put around £500 up as savings per month, should it go into a regular saver or is there a better option, sorry so many questions but a bit of a dunce when it comes to finance.

You can't add 6k to the 3k tax free allowance and put this straight into the Lloyds FRISA - unless they are ISA contributions for previous tax years you have made.

You should consider using your 2007/8 tax free ISA allowance ASAP (or you will loose it), then from 6th April you can add 2008/9 cash ISA allowance (going up to £3,600).

Sorry missed the last bit - £11k & £500 into BS high interest account, fixed rate bonds, regular saver - plenty of options here - depends how long you want to tie the money up for. Just one point the regular savers are usually limited to around £250 per month - got for whatever pays the best.

Lloyds FRISA is 6.5% on £9k+, below 9,000 the interest is tiered and not very good - so if you only had £3k you would be better looking elsewhere, see link.
http://forums.moneysavingexpert.com/showthread.html?t=401374

Aegis

littleD wrote: »

I opened an Egg ISA this year with £1.00 and intended to put in the allowed £3,000 for this tax year, however, I've noticed the Lloyds ISA at 6.5% fixed rate and was wondering whether I would be better off to put making the £3,000 up to £9,000 and putting this straight into that one and forget the £3,000 into Egg for this year completely.

Unless you already have £6k floating around in previous years' ISAs, you will not be able to make up the amount to £9k because you are limited to a maximum deposit of £3k each year up to this one and £3600 as of next year. Unless you can get to £9k, the Lloyds ISA isn't really worthwhile... (to my disgust!)