Should I get an ISA?

Hi I have Jupiter Maxi ISA into which I pay 50 per month with a top up
capacity of 6400. Can I also have an ordinary ISA into which I can pay a
lump sum of 3000 and then possibly varying amounts per month. Or is there
some place I can put this 3000 and earn maximum interest but able to
withdraw at short notice. I have it at present in a Cahoot savings account
in which I have managed to save the 3000 but the introductory rate will
soon be coming to an end and also I am paying tax on the interest.
Also when would be the best time to take the money from my bank account and
put it in a ISA if I can?
Also this money I have saved was for a holiday last year, but I was unable
to go on holiday. I will be going on holiday this year so will need it some
time in June/July to pay for the holiday. Or should I just leave the money
where it is.
Thanks Jacki
Reply to
Bitstring , from the wonderful person Jackie said
No. One maxi-ISA is your total allowance for the tax year.
I was using ING Direct, but their rate went down at the start of the year. now a mere 4.5%. You can however get money in/out on the Internet which is fairly convenient. (In/out as in 'to/from another current bank a/c').
You do understand that you'll pay tax on the ISA too .. at least on any dividends earned. No tax on interest (for a cash element of an ISA - limited to 3k/year- or interest paid on bonds) but there is tax deducted already on dividends from ordinary shares, UTs, etc., and you don't get it back.
Whenever you think the stock market is at its lowest for the tax year. I usually get in early (right after Apr06). But then I tend to ISA-ise the bond part of my investments, and keep Shares / ITs /UTs outside the ISA, since there's not much tax benefit having them inside (whereas there is on the bonds).
If you need it in June/July, not much point in putting the stuff you need into an ISA. Interest rates are pretty low all around right now. What return did you think you were going to get from Jupiter? What do you get from Cahoot now the honeymoon is over?
Reply to
GSV Three Minds in a Can
In message , GSV Three Minds in a Can writes
I understand your logic but if there is still some capacity left in the ISA then you may as well put the Shares etc., in there as well so that if in sometime in the future you want to switch out of shares and into bonds then they are already in the ISA wrapper and wont use up the current year's allowance.
Reply to
john boyle
In message , GSV Three Minds in a Can writes
Fair enough!
Would you like to amend the reason why Equities are not in your ISAs then? You said the reason was "since there's not much tax benefit having them inside (whereas there is on the bonds)."
Reply to
john boyle
What do you mean by "ordinary"? There are for all intents and purposes three kinds of ISA: Mini-cash, mini-shares, and maxi-shares. In any tax year you can open or contribute to either the maxi or to one or both minis.
If by "ordinary" you mean mini-cash, then the answer is:
No, not this year, but if you are not planning ever to contribute more than chicken feed into the maxi, then what you gain from the maxi will always be dwarfed by what you can earn in interest from a mini-cash, if fed serious money, and so it would be worth ceasing contributions to the maxi (and diverting them to the mini-cash) unless you can get the maxi converted, for future tax years, into a mini-shares, which of course could co-exist perfectly happily with a mini-cash.
Reply to
Ronald Raygun
Bitstring , from the wonderful person john boyle said
No, because that IS the reasons why none of my equities are in, and (some of) my bonds are. You need to read the whole sentence I wrote (quoted above).
OK I see your point - it's worth loading up an ISA with equities if you figure you might want to switch them into bonds one day (and you think the tax break will last until then), and if you don't incur any extra charges in holding them in an ISA (typically putting ITs or Shares in an ISA wrapper used to cost you extra though .. it was OK for Unit trusts and OEICs).
Reply to
GSV Three Minds in a Can
In message , GSV Three Minds in a Can writes
Yes, I have read it three times now!
Yes, thats the main point. I didnt want someone who was not fully using their ISA allowance NOT to put equities in it if there was still capacity.
Reply to
john boyle

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