ISA Accounts

[silverzx]

Anyone recently researched ISA's?

Basically I want to be putting at least 1k a month into this account for the next 12 months to save toward a deposit.

I'm doing my own reading but always good to ask you monkeys if you know anything I don't or have good/bad experiences.

It's all a bit confusing... http://www.moneysupermarket.com/savings/cash-isas/

Leaning toward the Santander "123 Direct ISA Saver".

[nominous]

Some bank used to (they may not now) do account where you saved a certain amount and then gave you a bonus when you used the money in the account to put down a deposit on a mortgage from them.
It might sound like epic lock in, but depending on the size of the deposit and the bonus it can be worthwhile.
I did this with natwest but it was back in 2010 and I know they've stopped it.

Also the interest rates on ISA's aint brilliant. Short term, 12 months you might find it more worthwhile to have the 123 current account as it pays a high interest rate up to 20k.
Or if you aint got a lump sum, see if there any any monthly saver accounts kicking about at present as they commonly pay a higher rate for saving in the manner that you plan to.

ISA imho is for putting it in to and forgetting about it for 5 years, letting compound interest do it's thing.
For short term there are better options (depending on the size of the savings).

[silverzx]

Some bank used to (they may not now) do account where you saved a certain amount and then gave you a bonus when you used the money in the account to put down a deposit on a mortgage from them.
It might sound like epic lock in, but depending on the size of the deposit and the bonus it can be worthwhile.
I did this with natwest but it was back in 2010 and I know they've stopped it.

Also the interest rates on ISA's aint brilliant. Short term, 12 months you might find it more worthwhile to have the 123 current account as it pays a high interest rate up to 20k.
Or if you aint got a lump sum, see if there any any monthly saver accounts kicking about at present as they commonly pay a higher rate for saving in the manner that you plan to.

ISA imho is for putting it in to and forgetting about it for 5 years, letting compound interest do it's thing.
For short term there are better options (depending on the size of the savings).

Cool, what are these "short term better options" you speak of?

Basically I have about £4k to chuck in now, then £1k end of the month for the next 12 months and an additional £4k lump sum to chuck in around September time.

So end of the year around £18k.

The thing that's attracting me to ISA is if I put £7k in pre-April then thats non-taxable which gives me allowance for another £15k for the 2015-2016 year?

[mr_fish]

maybe of interest

Save to buy

[swampy]

Chuck it in to premium bonds!
I had an isa and over the term earned less than a grand

When I stArt saving again around april time I'll be chucking it in to premium bonds

[Eeyore]

I had an ISA but emptied it for the Saab. it was with Newcastle BS. Be aware of any penalty fees for withdrawing your money!

[silverzx]

maybe of interest

Save to buy

Yeah, seen a few things like that..

Chuck it in to premium bonds!
I had an isa and over the term earned less than a grand

When I stArt saving again around april time I'll be chucking it in to premium bonds

Meh, thats tax free too, and up to how much a year? Instant access when I want to withdraw it? Mortgage lenders class buying £1k of premium bonds a month as "good saving"? I know they check bank balances but never heard of them checking premium bonds.

I had an ISA but emptied it for the Saab. it was with Newcastle BS. Be aware of any penalty fees for withdrawing your money!

Penalty fees I thought were just "you won't get your interest if you withdraw" bla bla bla, not an actual fee you pay?

[nominous]

I listed some of them.
MSE is a good place to take a look around the different savings account type and do some sums to see which works out the best.

Problem with ISA's is the rates are shit. The 123 account is paying something daft like 4% on 20K and if you're only a 20% tax payer then that's beating most ISAs that are not on a long term fix.
I'm talking about it, but I'm guilty of having shitty ISA's when I should be using the 123 account and earning more interest.
Even if one had a large sum of money in ISA's, with current rates and the fact that you can soon transfer 15K cash, it's just dumb having tax free ISA's verses the 123 rate if you only pay 20% tax.
If/when interest rates go up, you could then start dumping the 123 cash back into the ISA's to the tune of 15K/yr.
Just not got around to it yet...


Think I might be wrong about natwest, they might still be doing the "first home saver" account. The bonuses:

Amount - Cashback
Over £50,000 - £5,000
Up to £50,000 - £2,500
Up to £25,000- £1,000
Up to £10,000 - £500
£500 to £5,000 - £100

And a little trick to bear in mind that worked with the account when I had it, the money in the account allowed you to qualify for the bonus.
It didn't all have to be used for the deposit !!

"The amount of cashback is based on the lowest savings balance in the 6 months before the mortgage is drawn down"

So if you can beg borrow or steal enough to get you over 50K for 6months, then you'll qualify for a 5K bung and can use that for your mortgage deposit and give the 33K (or whatever) back to where-ever you got it from.
Since you don't use it for the deposit, it's not classed as a gifted deposit and if you aint using it on the application where you got it from wont be questioned.

Sneeky eh

I also wonder if it were possible to get an unsecured loan to boost the account.
That might affect your mortgage but you can show that you have the assets in cash to offset it and again it wont factor the mortgage because you wont be using it for a deposit.
Strongly suggest you read the small print if you wanna be that ballsy.


oh and check out the PB calculator on MSE.

[Eeyore]

I had an ISA but emptied it for the Saab. it was with Newcastle BS. Be aware of any penalty fees for withdrawing your money!

Penalty fees I thought were just "you won't get your interest if you withdraw" bla bla bla, not an actual fee you pay?

Depends what it says in the contract. I got charged £70 for withdrawing.

[Niall]

As above ISAs are shite right now unless you are paying into a locked account over a few years
Seeing as you are only doing this short term, i would look at some of these high interest current accounts. Lloyds have Club alloys which pay 4% on over 4k balance i think. I believe Santander pay 5% over 5k as well

[Toms306]

Some ISAs allow you to take out as and when you like, I thought most did these days!

I've got a meeting with a building society next week as my savings account has to be changed from a kids one now I'm getting old lol. I have literally no idea what its going to change to though, more than likely tell me an ISA is best in my case.

[Dum-Dum]

That's too much money for an ISA! you'll be well over what you can save tax free and also you wont have instant access.

Split your money between the maximum you can do tax free in an ISA, Premium bonds and something else.

[306carter]

I earn 1.5% on my ISA. That's with Yorkshire Bank and I have to give 30 days notice to withdraw.

[Eeyore]

How do you only get 1.5%? That's pretty dire.

[306carter]

That's all I've ever got. And im too lazy/busy to do anything about it. I thought this was about average?

[Toms306]

That's not bad atm tbh... I get less than 0.5% on mine currently, though admittedly my fault for not moving it elsewhere.

[nominous]

Martin Lewis on itv just now @ 2015
Catch it an hour later on +1

pretty much sums it all up

[silverzx]

Basically it's all sh1t. Doesn't make any odds where my money goes.

I still don't understand how much you can have in the bank before the gov gets fruity..

[306carter]

16k per year tax free so I belive?

Rest has to go into a normal savings account.

[Toms306]

I think its an odd amount just under 16k?


Without jacking the thread...I've got this meeting tomorrow at Britannia/Co-op Building Society and tbh I'm worried I'll get pushed into the wrong thing... Basically I've got a childs account that now needs changing. I've got between £1-2k in savings there and don't really use it (have another savings account as well) but I want instant access just in case, no chance of loss and as much interest as I can get on it, though I know it won't be much! What sort of account should it go into? ISA or something else?

[306carter]

You can get instant access ISA accounts but the intrest rate will be slightly lower than a 30-40 day notice account.

you don't pay tax on any interest with an ISA so if you don't already have one (you can have one) I'd go for an ISA.