Whats the best thing to do?

jane_adams_2

We've just surrendered an endowment policy so have just over £7k we want to put somewhere to earn a bit of interest on it.

I've been looking at ISAs but not sure if I am understanding them correctly.

As I understand it, we could put £3000 of this money into an ISA and the next tax year put in a further £3000. Now, the cut off date is coming up soon, so wondered, if we managed to get one set up before the cut off, would we be able to put the second £3,000 in at the start of the next year, even though there might only be a couple of weeks in between?

Alternatively, I was wondering if we could set up 2 separate ISAs, one for me and one for my husband, £3k in each?

Assuming either of these options is allowable, would it make any difference to the overall amount of interest we could earn?

(We have the cheque from the endowment company, I just need to put it through our normal account in order to set up the ISA(s).)

Thanks in advance for your advice.


Jane

stevedb11

jane_adams wrote: »

We've just surrendered an endowment policy so have just over £7k we want to put somewhere to earn a bit of interest on it.

I've been looking at ISAs but not sure if I am understanding them correctly.

As I understand it, we could put £3000 of this money into an ISA and the next tax year put in a further £3000. Now, the cut off date is coming up soon, so wondered, if we managed to get one set up before the cut off, would we be able to put the second £3,000 in at the start of the next year, even though there might only be a couple of weeks in between?

Alternatively, I was wondering if we could set up 2 separate ISAs, one for me and one for my husband, £3k in each?

Assuming either of these options is allowable, would it make any difference to the overall amount of interest we could earn?

(We have the cheque from the endowment company, I just need to put it through our normal account in order to set up the ISA(s).)

Thanks in advance for your advice.


Jane

Hi Jane,
Yes thats no problem, you still have while 5th april for each of you to open a cash ISA, £3000 each, =£6000,then next tax year after 5th April,your allowance is £3,600 each,=£7200, so its not a problem, regarding your interest you will get Gross interest paid on each account,
I've got the Icesave ISA which pays 6.10%.
Hope this helps, Steve;)