Best savings account?
- Thread starter Merlin5
- Start date
Hi,
Quick question, i have recently setup a Zopa ISA account (the 5.08%) account which is a flexi type of account, interest paid monthly, you can widthdraw no pentalies, save up to £20k in the same tax year etc. I dumped £10k in to it, and so far its up to £13,390k (Opened Dec 2nd 2023) Does this mean I am allowed to save up to the £20k before this tax year ends, then it will refresh in April 2024? where i can then add more to it ?
Another question
I know you can open a different "type" of ISA and save alongside this one, IE it maybe be a different ISA account, or a stocks and shares ISA etc, whats generally the next best way to go to save tax free with the better return, i have not really looked in to stocks and shares ISA before but im after some info about how risky it is ?
I want to try and get another account which is giving me gaurenteed return on investment if i save in to it, tax free along side my current cash isa with ZOPA
Quick question, i have recently setup a Zopa ISA account (the 5.08%) account which is a flexi type of account, interest paid monthly, you can widthdraw no pentalies, save up to £20k in the same tax year etc. I dumped £10k in to it, and so far its up to £13,390k (Opened Dec 2nd 2023) Does this mean I am allowed to save up to the £20k before this tax year ends, then it will refresh in April 2024? where i can then add more to it ?
Another question
I know you can open a different "type" of ISA and save alongside this one, IE it maybe be a different ISA account, or a stocks and shares ISA etc, whats generally the next best way to go to save tax free with the better return, i have not really looked in to stocks and shares ISA before but im after some info about how risky it is ?
I want to try and get another account which is giving me gaurenteed return on investment if i save in to it, tax free along side my current cash isa with ZOPA
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This doesn't add up.
But whatever the sums if you only added 10k you can add another 10k before the deadline. Then you get another 20k for the new tax year.
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Why doesnt it add up ?
I opened it by dumping in £10k beginning of december, then when i got paid Dec 20th i dumped another £3350 in, giving me a total of £13,350, yesterday i recieved £47 interest payment from 2nd Dec > 2nd Jan, so my correction i actually have £13,397 in there at the moment (Apologies i should have said i made another deposit end of Dec)
and thanks thats what i wanted to clarify that in April I could continue to save another £20k in to this account from the new tax year.
Can anyone reccomend another decent return type of ISA? or is it worth just using the new tax year to continue saving in to this Cash ISA. Planning to have a search to see what products are out there
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Because you didn't mention in your post you paid in another £3350...
Yeh i know I apologised should have said
It depends if you are willing to take on risk, over the long term an S&S ISA with simple global tracker will outperform cash by a considerable margin.
I don't know, it depends, im not willing to just lose money, but i know you have to be a little patient with S&S ISA, IE i guess you could run in to a situation where you could be down, but then I guess in those situations you could have to "ride out" any negative or losses? and wait for it to climb back ?
I could be but i wouldnt want to lose or risk a conciderable amount, until i have confidence in it
Soldato
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That's all I've done now. Global all cap Vanguard fund contained within a S&S ISA. Set and forget
Caporegime
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It all depends on the risk profile of the shares/fund/bonds you buy. You're not guaranteed to make back any losses over time.
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The time frame is years. Decades. The earlier you start the better your compounding potential.
Caporegime
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If under 40 a lifetime ISA is worth a look for a long term strategy.
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You can only put in £4k each tax year in to a lifetime ISA, i usually save approx £3.3-3.5k per month so i would assume i would hit my limit within 1.25 months
Maybe for a longer term strategy, but that is super long term
It would mean saving for 10 years to accumulate £40k in the lifetime ISA. Is it really worth it? Also worth noting I am 40 years old this September. I wouldnt benifit from the 25% bonus as im not a first time house buyer, but could i use the bonus for retirement ?
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dlockers
D
dlockers
LISAs are pretty terrible long term investment vehicles. For pensions, you get no tax relief.
For buying a house, they are useful if you can leverage them appropriately.
Max your ISA every year and the rest into a low cost SIPP? That's what I would do anyway.You can only put in £4k each tax year in to a lifetime ISA, i usually save approx £3.3-3.5k per month so i would assume i would hit my limit within 1.25 months
Maybe for a longer term strategy, but that is super long term
It would mean saving for 10 years to accumulate £40k in the lifetime ISA. Is it really worth it? Also worth noting I am 40 years old this September. I wouldnt benifit from the 25% bonus as im not a first time house buyer, but could i use the bonus for retirement ?
Caporegime
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You still get the 25% bonus if not using it to buy a house. You get the bonus as you pay in so it earns interest too.You can only put in £4k each tax year in to a lifetime ISA, i usually save approx £3.3-3.5k per month so i would assume i would hit my limit within 1.25 months
Maybe for a longer term strategy, but that is super long term
It would mean saving for 10 years to accumulate £40k in the lifetime ISA. Is it really worth it? Also worth noting I am 40 years old this September. I wouldnt benifit from the 25% bonus as im not a first time house buyer, but could i use the bonus for retirement ?
Caporegime
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Maybe it's a public sector thing then, if you've maxed out your defined benefit pension then a LISA seems the next best thing.
dlockers
D
dlockers
Not sure - I think a private pension and claiming the tax back would still be way more effective.
Why would public sector make any difference?
Caporegime
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I don't know anyone who has a private pension in the public sector (or the NHS atleast), I'll be honest I don't know why, potentially an annual allowance/taper issue making you not eligible for tax relief?
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