ISA advice

Lorne

I've never been in a position to start saving, but as our debts are reducing there is some extra money to save towards repayments. The car loans will not allow us to make overpayments and we were going to put the money aside into an ISA but the bank have advised that you can only put in £3600 a year to an ISA, even if you withdraw it you can't build it up again for the next overpayment - is this true? and if so is there a better account to be using?

Any advice appreciated, thanks

Toastie

Lorne wrote: »

I've never been in a position to start saving, but as our debts are reducing there is some extra money to save towards repayments. The car loans will not allow us to make overpayments and we were going to put the money aside into an ISA but the bank have advised that you can only put in £3600 a year to an ISA, even if you withdraw it you can't build it up again for the next overpayment - is this true? and if so is there a better account to be using?

Any advice appreciated, thanks

ISA's are tax free, so thats 20% extra (if your a lower rate tax payer) or 40% (if higher) on your savings which the interest is taxed.

An ISA would be perfect, you can only put £3600 and what ever you withdraw can't be put in, once you have ADDED £3600 no more can be put in even if you withdraw £600.

So in a sense this is good roughly 6% is a good ISA, Barclays (but long times opening) are the best 'common' high street bank. Online Icesave is ok but some people have problems with investing in foreign banks.

http://www.moneysavingexpert.com/savings/best-cash-isa#best

That gives you a good idea.

Personaly have an ISA, they can't be in a joint name SO you and your wife or girlfriend can have one, even mum and dad can help you if you will save over £3600 (my mum is opening one for me )

I hope this helps.

debbie42

Toastie wrote: »

Personaly have an ISA, they can't be in a joint name SO you and your wife or girlfriend can have one, even mum and dad can help you if you will save over £3600 (my mum is opening one for me )

There are no limits to cash gifts between spouses, but elsewhere it isn't so straightforwards.

Aegis

debbie42 wrote: »

There are no limits to cash gifts between spouses, but elsewhere it isn't so straightforwards.

Indeed... Anywhere else you have to watch out for potentially exempt charges, not to mention the fact that legally the money becomes theirs to do what they want with. As such, give your girlfriend £7200 to invest in an ISA "for you" and she's be perfectly entitled to go and spend it on a new car or a couple of pairs of fashionable shoes.

Lokolo

Aegis wrote: »

Indeed... Anywhere else you have to watch out for potentially exempt charges, not to mention the fact that legally the money becomes theirs to do what they want with. As such, give your girlfriend £7200 to invest in an ISA "for you" and she's be perfectly entitled to go and spend it on a new car or a couple of pairs of fashionable shoes.

Damn those women, damn them!

Lorne

Thank you very much for the ISA information

debbie42

Aegis wrote: »

As such, give your girlfriend £7200 to invest in an ISA "for you" and she's be perfectly entitled to go and spend it on a new car or a couple of pairs of fashionable shoes.

Crikey! Where does your girlfriend shop for shoes? I thought I could be extravagant at times, but I've never spent *that* much on a pair.

Aegis

debbie42 wrote: »

Crikey! Where does your girlfriend shop for shoes? I thought I could be extravagant at times, but I've never spent *that* much on a pair.

I just assumed that was what they must cost given how much some girls seem to drool over shoes!

Luckily my girlfriend seems to have less interest in shoes than me, which is saying something!




She wants an Aston Martin instead...

Toastie

Aegis wrote: »

I just assumed that was what they must cost given how much some girls seem to drool over shoes!

Luckily my girlfriend seems to have less interest in shoes than me, which is saying something!




She wants an Aston Martin instead...

Not sure £7200 will get her one! But you can try