ISA question

[Ricochet J]

If I open an ISA with £10. And continue to put in £10 every month, would this be the best way to save assuming I don't need to take the money out of the ISA at any given time?
Or would a normal savings account be better in my case?

Thanks

 

[JIM_BOB7813]

ISA is better than most savings accounts. I believe some give decent rates for first year if you put in £100 a month, every month etc.
But at £10/month, just go with ISA.

 

[tuffty747]

I set up an ISA with Halifax on monday, they're good accounts to have, but choose wisely which bank you go with, as you're only allowed 1 Sadly, I went with possibly the lowest rate going, as I didn't look into it first...
But yeah, an ISA is good for short term (under 18 months) anything above that, I'd say a normal savings account.

 

[Heliospherez]

Only thing I think you 'may' have a problem with (with some ISA's) - is that you 'may' be limited to a specific number of withdrawls per year and you are limited to the amount you can put in.

 

[FrostedNipple]

Because you are a student, I'm guessing you don't earn enough to be taxed. If this is the case you may find it more beneficial to get a normal savings account because you can take out your money and still keep interest that you did earn on it.

 

[Heliospherez]

I set up an ISA with Halifax on monday, they're good accounts to have, but choose wisely which bank you go with, as you're only allowed 1 Sadly, I went with possibly the lowest rate going, as I didn't look into it first...
But yeah, an ISA is good for short term (under 18 months) anything above that, I'd say a normal savings account.

You Sure ? If it's a cash only one, you may need a re-think.

Quote from Global Investor website :

How many ISAs can you have?
In any single tax year, you can take out:

ONE maxi-ISA
or
Up to TWO mini-ISAs
and
ONE Tessa-only ISA

 

[tuffty747]

You Sure ? If it's a cash only one, you may need a re-think.

Quote from Global Investor website :

How many ISAs can you have?
In any single tax year, you can take out:

ONE maxi-ISA
or
Up to TWO mini-ISAs
and
ONE Tessa-only ISA

I was told by Natwest, Lloyds and Halifax that you're only allowed 1 Cash ISA, I'm a student though, don't know if that makes any difference...

EDIT: I must have 1 Maxi-ISA, which means I'm not allowed anymore.

 

[semi-pro waster]

Only thing I think you 'may' have a problem with (with some ISA's) - is that you 'may' be limited to a specific number of withdrawls per year and you are limited to the amount you can put in.

You're certainly limited in the amount you can put in - up to £7,200 in a stocks and shares ISA (you can split it £3,600 to cash and £3,600 to stocks and shares) or £3,600 in a cash only ISA but both limits are academic at £10 per month.

 

[JIM_BOB7813]

Because you are a student, I'm guessing you don't earn enough to be taxed. If this is the case you may find it more beneficial to get a normal savings account because you can take out your money and still keep interest that you did earn on it.

AFAIK most ISAs allow you to withdraw freely.
I would get it in an ISA, even if you are under the tax bracket now, when you start earning you'll wish you'd filled your ISA quota in previous years.

 

[Energize]

You Sure ? If it's a cash only one, you may need a re-think.

Quote from Global Investor website :

How many ISAs can you have?
In any single tax year, you can take out:

ONE maxi-ISA
or
Up to TWO mini-ISAs
and
ONE Tessa-only ISA

Mini and maxi isa's don't exist anymore, only cash and stocks components. You can have as many isas as you want, but can only invest in one per year.