Help understanding bank please

[TwilightAgain]

I've never had a savings account before so struggling with all the bank lingo. Does the below mean that there is a cap on how much you can save? Thanks

I have not subscribed and will not subscribe more than £11,880 in total to a cash ISA and a stocks and shares ISA in the same tax year;
I have not subscribed and will not subscribe more than £5,940 of the overall £11,880 total to a cash ISA;

 

[aimee-lou]

an isa has a limit as the money and interest are not taxed. if you plan on saving more than the allowances then you'll either need to open a different account and put all the money in there like an instant access one, or use the isa up to your limit then use a 2nd account for the remainder. you can only have 1 isa allowances per tax year.

hth

 

[TwilightAgain]

Thank you I think i'll go with a second normal account then, less complicated

 

[hayz_baby]

Isas are usually your best form of saving as they are tax free whereas with a standard savings account you are taxed on the interest you earn.
Isas are split into two, stocks and shares isa and a cash isa. Your allowance per tax year for this year is £11880. You cannot pay anymore then £5940 into a cash isa. When the tax year restarts then you start all over again with next years allowance but if you don't use it you loose it.
Its always worth starting off with your visa as they tend to offer the best rates plus you don't pay tax and if you have to do a tax return then u don't have to declare your isa.
Just remember you can only pay into 1 isa per tax year, you can have multiple isas just as long as you are only putting new money into 1 isa per tax year.
Ihope this helps x

 

[Lucy_2010]

From the 1st of July the Isa limit is rising to £15000, and you would be able to put that all in a cash isa.

Cash isa is a good idea as you wouldn't be taxed.

 

[Pearls18]

ISAs are the best bet, you've just missed out but if you had of put some in before April 6th you could have then started a fresh afterwards for the tax year. But as a PP says it's going up to £15,000 in July, so your best bet is to put up to the limit now, and the rest after July. Save the rest elsewhere for the rest of the year until the next tax year to put in then.

We have an ISA (I say we, it's in my husband's name as you can't have a joint, but we both save into it) best bet for saving.

 

[maryp0ppins]

I would go for an ISA.
You can take money from your isa (I can with barclays) but you can not replace that money so I would only take it in emergencies. Eg if you deposit 1500 into the acct and then 3 months later you take 500 out then the acct counts it still as 1500 for the amount limit (I hope that makes sense!) So you could not start saving again and go up to the limit, it.would have to be less 500 as you will get taxed on anything above