Should i put £2500 in a Isa Or Saving Account

richev

Am i right in thinking that isa are tax free on intrest which is paid yearly.
A savings account i will be paying intrest which will be yearly ?

i found a 6.5% on a isa and on a savings account
Any adivce would be great

I also understand that i can only put a set amount ( 3600 ) per year into the isa

Is my capitial secure in a isa ?

Lokolo

Its £3000 upto 5th April, then on 6th April you can put £3600.

It is secure yes, upto £33k with each bank.

And yes ISAs are tax free, general savings accounts take tax of 20% off the interest. But interest isn't always paid yearly, sometimes monthly.

richev

Thanks for your reply.
So lets say i put £2500 in a isa on the 7th april ( for next year )

Lets say i keep it in there for 6 months... do i only get 6 months interest ? when is it paid ? Yearly ? does it have to be in there a year before i get any interest. if i pull it out do i not get any interest ?

AM i better with premium bonds ? From what i can see you get no interest paid but have the chance of winning case prizes

any advice would be great

richev

Also can i take the funds out at any time. ?
by taking the all of the funds out this closes the account yes ?

macca64

Yes you will only get interest for the amount of time your money is in the ISA, eg 6 months in your post.

yes you can withdraw the cash at anytime, unless it is a notice account or a fixed rate account, in which case you might loose interest.

Remember an ISA is just a normal savings account, but you get the tax benefits with it. Read Martin's article about ISA's if your unclear.

macca64

Lokolo wrote: »

Its £3000 upto 5th April, then on 6th April you can put £3600.

It is secure yes, upto £33k with each bank.

And yes ISAs are tax free, general savings accounts take tax of 20% off the interest. But interest isn't always paid yearly, sometimes monthly.

Also isn't the guarantee upto £35k now?

Zeusiblue

hello i would be grateful for any advice as i am new to isas.i have just opened a mini cash isa with first direct as i also bank with them and it would be too late to set one up for this tax year anywhere else. iwas itworth me putting 3000 in today for this tax year and then adding £3600 after 6th april for the next tax year? or would it be better to open up my first isa for april 6th (2008/2009 tax yaer) and then my partner putting one in too for the same year? hope this is clear ! please advice.

10_66

I've attached a link to your other thread to which I've just replied. Hope this helps.

http://forums.moneysavingexpert.com/showthread.html?t=828747