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    After turning sixteen, Natwest have informed me that I can open two new accounts. An ISA, and instant ISA. I've done my research and have a general idea of what they are and the benefits, would you suggest it?

    To be truthful, I would probably put between £40-£100 in at first, but I don't know if that is worth it.
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    I've been doing some general looking around at friendly options for student banking and came across ZakBank. Looks like its linked to a Credit Union that offers ISAs designed for Students - might be worth a look.
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    (Original post by DebkoX)
    After turning sixteen, Natwest have informed me that I can open two new accounts. An ISA, and instant ISA. I've done my research and have a general idea of what they are and the benefits, would you suggest it?

    To be truthful, I would probably put between £40-£100 in at first, but I don't know if that is worth it.
    isa's are not keeping pace with inflation therefore I wouldn't invest in a new isa. If you are prepared to take more risk you are able to achieve a better return on crowd funding websites. I think the wind turbine and solar panel projects are probably the safest and yield around 5-7.5%. You should decide how much risk you are prepared to take and invest accordingly. However Cash is usually considered the safest form of investment. As an alternative investment you could buy physical silver.
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    ISAs are pretty rubbish, but they're the best low maintenance option available really.

    You can just chuck all of that money in there, leave it and earn about 1.5% on it without lifting a finger. Now when taking inflation into account, that's really rubbish so you're money is still going to rot away. But it's better than just keeping it in a current account where it rots away even more without any interest at all.

    I'd say go with an instant access new ISA, and then if you come up with any better plans you can always take the money out.
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    (Original post by DebkoX)
    After turning sixteen, Natwest have informed me that I can open two new accounts. An ISA, and instant ISA. I've done my research and have a general idea of what they are and the benefits, would you suggest it?

    To be truthful, I would probably put between £40-£100 in at first, but I don't know if that is worth it.
    At 16 and with relatively low amounts; theres really not going to be much difference in it. You're likely to be needing the money within the next couple of years for uni/car/holidays etc so I wouldnt bother with anything complicated like investments etc.

    As you'd still be a student you wouldnt pay tax on your interest anyway so an ISA might not actually be the best option. Find the highest interest rate you can regardless of it being an ISA or not.
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    Thanks. Perhaps when I'm rich xD
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    (Original post by DebkoX)
    After turning sixteen, Natwest have informed me that I can open two new accounts. An ISA, and instant ISA. I've done my research and have a general idea of what they are and the benefits, would you suggest it?

    To be truthful, I would probably put between £40-£100 in at first, but I don't know if that is worth it.
    You dont get taxed on the first 5k for other savings accounts with better interest rates anyway so id say no until you have a job.

    With such a small amount id just leave it in your current account.
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    Funnily enough, I got myself a job this week!
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    Maybe instead of an isa you should consider a SIPP? HM Government will kindly add 20% to your contributions every month. Cash ISAs are a complete joke and will be, i predict, for another 15 years or so.
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    Keep imsoacademic out of this...
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    Hi

    I just came about this thread, and since I have been working in a bank for a few years, I thought I might be able to help!!

    Opening an ISA can be a great way of saving because you get to utilise the fact that you will not have to pay tax on the interest you get back for your money! This will obviously help you save more than what you would with a normal instant access savings account!

    But you must read everything in the T&Cs.
    Some providers will sell the accounts based on fixed rates and instant access, so it is worth it having a good think about whether you will in fact need access or not!
    Some state, that if you withdraw from the accounts you might be penalised, and others state that you won't. This is the instant cash ISA.

    The fixed rate ones, you tie yourself up for 1, 2 or an optional 3 years, where you will be denied access completely.

    Also be aware, that the strongest rates of interest will be found at the beginning of a new tax year, and that if you open it early in the year, you might even get an introduction bonus in terms of eg + 0.80 % interest on top of what they are already paying out. However, as the months go by, the rates will go down on the new ISA's. So the earlier you open them, the better!

    The market is very competitive, so I do suggest you shop around for the best rates and the account that suits YOUR specific needs.
    Just because you have a current account with one bank, it doesn't mean you have to have your ISA with them!

    Now, also remember that having an ISA comes with a certain allowance.

    Each year, one gets a new tax free savings allowance, ergo an amount of money that one can earn tax free interest on.

    Say for example the yearly allowance for a cash ISA is 100 pound.
    If this is the case, you will also be allowed to invest an extra 100 in an investment ISA. So there is 200 pound with tax free savings. However you can only have one CASH ISA, so if you have put in 100 pound in it this year, and you withdraw 50, you will not be able to put it back in, because you will have already used the allowance.

    Hope this helps, please shop around if you want to go for an ISA
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    (Original post by MariaKaehne)
    Say for example the yearly allowance for a cash ISA is 100 pound.
    If this is the case, you will also be allowed to invest an extra 100 in an investment ISA.
    No such thing as Cash ISA or Investment ISA anymore. Worrying from someone who has worked in a bank for a few years
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    (Original post by Reue)
    No such thing as Cash ISA or Investment ISA anymore. Worrying from someone who has worked in a bank for a few years
    Have not worked in a bank for over a year and a half, I just used to But thank you for pointing it out, I am sure it is of great help to the OP also. After all that is what we are here for.
    And yes, they still exist, but I actually forgot that a new rule has taken place in July, which means customers get a choice in whether they want to invest full allowance in either or, or split it up which wasn't previously to July possible Oh and they are called NISA now. Stocks and Shares or Cash NISAS.
    This is as far as I have understood it, I however do not work in a bank now, so no longer receive the full training on the matter
 
 
 
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