new ISA

jennyred

Hi
I was wondering if anyone can help. I am quite new to the savings game but have decided to start regular saving into a HSBC mini cash ISA.
I applied online last night and put £500 lump sum and £200 per month starting on the 4th may.
can anyone tell me as I applied before the end of the finanial year - does that mean my £500 is classed as this year ie 2007/2008 or will it auomatically begin for the next tax year?

thanks in advance

jenny

Aegis

If it goes in before the 6th of April, it will count as this year's allowance.

jennyred

will it then automaticly roll over into next year - so next year my ISA will already have £500 in it so I can then add £3200 in 2008/2009. What I mean is, I wont have to withdraw it to put it back in again?
god I hope that makes sense!

Aegis

jennyred wrote: »

will it then automaticly roll over into next year - so next year my ISA will already have £500 in it so I can then add £3200 in 2008/2009. What I mean is, I wont have to withdraw it to put it back in again?
god I hope that makes sense!

Makes enough sense to me

Your ISA next year will already have £500, and you will be able to add up to £3600 between April 2008 and April 2009, assuming you don't use more than £3600 of your stocks and shares ISA limit. You won't have to withdraw and deposit your money, and in fact this would be a very bad thing to do, as it would lower the total amount you could have in your ISA at the end of the next tax year!

I should add that you can find better ISA rates elsewhere if you would prefer a somewhat higher paying account.

Aegis

I've just seen your signature, and wonder if you have considered that paying off your short-term loans might be a better use for the money at this stage? If you've already thought about this, then fine, but you should know that loans are likely to cost you more than you could make from an ISA, so it might be a good idea to overpay on your loans if the facility to do so without penalty exists.

jennyred

Thanks for your thoughts
did consider this as it would be lovely to get rid of the debt.
EGG is 0% for next 13 months and TSB loan was only taken out in jan(for 24months) for uni fees for my masters so really low APR 7.9% - cant over pay so my thoughts was to carry on making payments for next 12 months then use other savings account to clear balance hopefully just before christmas.
Have £2500 in HSBC flexi saver ?what rate, and usually add a couple a hundred to this a month.
as you can see I am one of those really stupid loyal customers who stay with the same bank for everything!! lol

martinman3

It is not often that I get to talk to DFWs as we don't get that many visiting us here.

Your signature mentions a HSBC loan too, can you not pay that off instead or is your signature out of date ?

jennyred

martinman3 wrote: »

It is not often that I get to talk to DFWs as we don't get that many visiting us here.

Your signature mentions a HSBC loan too, can you not pay that off instead or is your signature out of date ?

I could but its over £16000!! need a little time to save that! its get 4 years to run so hopefully will save and pay it off in 2 years. cant overpay on it which is a shame.