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What is a Cash ISA?

I keep receiving notifications on my internet backing to open a Cash ISA. Could someone please explain what an ISA is and if it is worth having one?
Reply 1
Avatar for Davalla
Davalla
20
Original post by Nfergs
I keep receiving notifications on my internet backing to open a Cash ISA. Could someone please explain what an ISA is and if it is worth having one?


An Individual Savings Account:
http://moneyfacts.co.uk/guides/isas/what-is-a-cash-isa120412/

You put savings into the account and earn tax free interest just for having the money in there. If you have a lot of money that you don't plan on spending for a while, they can be great. Interest rates can depend on the account type.

Whether it's worth it is up to you; if you only plan on putting a couple of quid in there, then no. They aren't necessary (it sounds as though you already have some form of current account) but are nice little add-ons.
Unless you have a lot of money then Isas aren't worth it anymore as you only get taxed once the interest is over £1000.
Reply 3
Avatar for Nfergs
Nfergs
OP
19
Original post by Davalla
An Individual Savings Account:
http://moneyfacts.co.uk/guides/isas/what-is-a-cash-isa120412/

You put savings into the account and earn tax free interest just for having the money in there. If you have a lot of money that you don't plan on spending for a while, they can be great. Interest rates can depend on the account type.

Whether it's worth it is up to you; if you only plan on putting a couple of quid in there, then no. They aren't necessary (it sounds as though you already have some form of current account) but are nice little add-ons.


I do already have a standard savings account which I receive an annual 0.20% interest rate. Obviously the interest is gradually increasing as I save more money but it isn't much.

What would be a good amount of money to put into an ISA?
Original post by Nfergs
I do already have a standard savings account which I receive an annual 0.20% interest rate. Obviously the interest is gradually increasing as I save more money but it isn't much.

What would be a good amount of money to put into an ISA?


my mum has some for occasional saving (new cars, holidays and that sort of thing) and well £500 is ok to start the most my mum had was £7500 before we bought a car atm she's got £2,800 in her's
Reply 5
Avatar for Doones
Doones
21
Original post by claireestelle
Unless you have a lot of money then Isas aren't worth it anymore as you only get taxed once the interest is over £1000.


^this

Although the new Lifetime ISA might be worth a look (free money!)
http://www.moneysavingexpert.com/savings/lifetime-ISAs

And a Stocks & Shares ISA is probably worth considering someone intends to save a siginificant amount (i.e. on or near the annual limit) for the medium to long term.
(edited 7 years ago)
Reply 6
Avatar for Nfergs
Nfergs
OP
19
Original post by jneill
^this

Although the new Lifetime ISA might be worth a look (free money!)
http://www.moneysavingexpert.com/savings/lifetime-ISAs

And a Stocks & Shares ISA is probably worth considering someone intends to save a siginificant amount (i.e. on or near the annual limit) for the medium to long term.


I've been doing some research and I'm considering opening a fixed rate ISA but I'm not sure if to go for 2 or 3 years.

The LIfetime ISA starting next year also sounds pretty good. So if I open an ISA now will I stil be able to open a Lifetime ISA next year?
Reply 7
Avatar for Doones
Doones
21
Original post by Nfergs
I've been doing some research and I'm considering opening a fixed rate ISA but I'm not sure if to go for 2 or 3 years.

The LIfetime ISA starting next year also sounds pretty good. So if I open an ISA now will I stil be able to open a Lifetime ISA next year?


Yes the ISA allowances are annual. So if you invest up to the limit this tax year you can still invest again next tax year.

Posted from TSR Mobile
It's worth having a help to buy ISA, not worth having anything else.

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