quick ISA question

moneymabel

Hi all, after i have paid my debts off(end of the year) i am planning on saving for a car, it will take at least 2 probably 3 years. as i havent got an ISA at the mo would i be better putting the first £3600 into one of those than a 'normal' savings account? once it is 'full' am i allowed to open another one in the following year or can you only have one at once? i know you can only have one a year. Sorry for complete newbie questions and thanks for any help.

Lokolo

You can put in £3600 a year (tax year). You can open an Egg one now, a Lloyds one next year, a HSBC year after.

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

Have a look here for the best ISAs.

You can only cntribute money to one, i.e. if you have some money, you open an Egg ISA, you can put £3600 in that, you can't put £3000 in it, open another one with HSBC and put £600 in that.

moneymabel

Thankyou Lokolo, so its ok to have £3600 in one and keep it open and then open another. Thanks very much for your help.

moneymabel

Each tax year (6 April until the next April 5) everyone aged 16 or over gets a new ISA allowance. If you don't use it, you lose it. Yet if you do put the cash in, you can keep it in there, tax-free for as long as you like. And as soon as the next tax year starts (i.e., 6 April) you can put a whole new £3,600 in too.

sorry confused again! does this mean that you can put more than £3600 into one cash ISA as long as its not til the following year or that you still need to open a new one for any additional money after the initial £3600
told you i was a newbie....;-)

Oblivion

moneymabel wrote: »

sorry confused again! does this mean that you can put more than £3600 into one cash ISA as long as its not til the following year or that you still need to open a new one for any additional money after the initial £3600
told you i was a newbie....;-)

Yes, you can keep adding to that one ISA in each subsequent tax year if you want to. You don't have to open a new one. The only time it makes sense to open a new one is if you can obtain a better interest rate.

Dave.

moneymabel

Thankyou very much Dave you have been a great help cheers :-)