Saving up money

GeCon

Hi,

I really hope someone on here can help.

I would like to put some money into a different account each month in order to save up some money, which I will be needing at beginning of December.

I have had a look in Martin's savings section, but I am now even more confused than I was before.

The articles explain about your tax-free allowance and ISA's. But my question is: How does it work? Would that need to be declared somewhere? And if so, where?

Sorry if my questions sound a bit stupid, but I just don't get it...yet!

Any help would be much appreciated.

turbobob

No you wouldn't have to declare an ISA on a tax return or anything like that. The interest paid in a cash ISA is tax free. That's all there is to it really. There is an annual contribution limit of £3600 per tax year into a cash ISA. Also you can only pay into a cash ISA with one provider in any tax year. You have to be over 16 and (IIRC) have a National Insurance number to be eligible.