If you're going to accumulate £1m in a cash ISA you may as well stick it in stocks and shares... It's not worst thing you could do just don't go over the £85k limit per bank!!!
This is the first I have heard of the savings allowance, thank you so much! Cleared up a lot of confusion I had over the difference between savings accounts and ISAs
Glad you found it useful. Also check out this article on our website titled "What is the personal savings allowance (and how you can boost it by £5,000)' moneytothemasses.com/tax/income-tax-2/what-is-the-personal-savings-allowance-and-how-you-can-boost-it-by-5000 Damien
Thank you for keeping it simple, I'm still not 100% clear... it would be great to have it brought to life with an illustrated example with figures, so if I had 5k and put it in a savings account on the same interest rate as a cash ISA, to just fully close the loop on my understanding!
Hi Lola, You can move the money from your savings account into the cash ISA but you usually have to withdraw the money from the savings account into your current account first. You should also be mindful of any limits on your savings account, e.g. if it is a fixed-term savings account, as well as the annual ISA limit which is £20,000 in the current tax year 2022/23.
Most ISA providers require you to deposit either a minimum initial lump sum or commit to a regular direct debit. The minimum deposits vary from provider to provider and the type of ISA you open. For more information on the different types of ISA check out this video - th-cam.com/video/_DIj7NxvRfw/w-d-xo.html
Yes, you can hold both a cash ISA and a Lifetime ISA at the same time as long as you don't exceed the overall ISA limit of £20,000 in the 2019/20 tax year. (You can only contribute a maximum of £4,000 in a Lifetime ISA in one tax year. )
Yes, there is nothing stopping you using the money you have saved in a Cash ISA to purchase a house. If you have enough to buy the whole house then great, alternatively, you could use the money from your cash ISA to put towards your deposit. Remember, you may still be liable for Stamp Duty, so bear that in mind. If you are a first-time buyer, you could use a Lifetime ISA to save your deposit as you will benefit from a 25% government boost, although you'll be limited to saving just £4,000 per year.
For the last tax year, my department opened a Cash ISA in January 23, and then deposited a new amount into the Cash ISA account in February (no more than 20,000 pounds at the time). Then in the second tax year, that is, in June 23, I injected a new amount into the same Barclays Cash ISA (total has exceeded 2 pounds). Barclays injected funds into 2 different tax years separately. On the same day, in June 23, I opened an ISA Cash account in another bank, Lloyds Bank. That is, now I have opened a CASH ISA account in 2 different banks, but they have separated 2 tax years and different banks. Do this Got it? Thank you. Opened the first ISA Cash Account in January 23, and deposited some amount in February. In June 23 of the second tax year, the additional amount was added to Barclays. Opened an additional ISA CASH account at Lloyds Bank in June 23.
Video starts at 1:10
so clear! finally someone who explained it well!
Cash ISA interest is about 0.6 year. So if I put in £20 000, my yearly interest is £120 per year?? What about inflation? I do not see any advantage.
If you're going to accumulate £1m in a cash ISA you may as well stick it in stocks and shares... It's not worst thing you could do just don't go over the £85k limit per bank!!!
This is the first I have heard of the savings allowance, thank you so much! Cleared up a lot of confusion I had over the difference between savings accounts and ISAs
Glad you found it useful.
Also check out this article on our website titled "What is the personal savings allowance (and how you can boost it by £5,000)'
moneytothemasses.com/tax/income-tax-2/what-is-the-personal-savings-allowance-and-how-you-can-boost-it-by-5000
Damien
Thank you for keeping it simple, I'm still not 100% clear... it would be great to have it brought to life with an illustrated example with figures, so if I had 5k and put it in a savings account on the same interest rate as a cash ISA, to just fully close the loop on my understanding!
Love this was going crazy trying to figure it out
Can you transfer a saving acc to cash isa . Thanks for sharing
Hi Lola,
You can move the money from your savings account into the cash ISA but you usually have to withdraw the money from the savings account into your current account first. You should also be mindful of any limits on your savings account, e.g. if it is a fixed-term savings account, as well as the annual ISA limit which is £20,000 in the current tax year 2022/23.
i finally understand thanks!
On a ISA do you have to put money in every month
Most ISA providers require you to deposit either a minimum initial lump sum or commit to a regular direct debit. The minimum deposits vary from provider to provider and the type of ISA you open. For more information on the different types of ISA check out this video - th-cam.com/video/_DIj7NxvRfw/w-d-xo.html
Can I have a cash isa and a lifetime isa at the same time?
Yes, you can hold both a cash ISA and a Lifetime ISA at the same time as long as you don't exceed the overall ISA limit of £20,000 in the 2019/20 tax year. (You can only contribute a maximum of £4,000 in a Lifetime ISA in one tax year. )
Can you use a cash ISA to buy a house?
Yes, there is nothing stopping you using the money you have saved in a Cash ISA to purchase a house. If you have enough to buy the whole house then great, alternatively, you could use the money from your cash ISA to put towards your deposit. Remember, you may still be liable for Stamp Duty, so bear that in mind. If you are a first-time buyer, you could use a Lifetime ISA to save your deposit as you will benefit from a 25% government boost, although you'll be limited to saving just £4,000 per year.
For the last tax year, my department opened a Cash ISA in January 23, and then deposited a new amount into the Cash ISA account in February (no more than 20,000 pounds at the time).
Then in the second tax year, that is, in June 23, I injected a new amount into the same Barclays Cash ISA (total has exceeded 2 pounds). Barclays injected funds into 2 different tax years separately.
On the same day, in June 23, I opened an ISA Cash account in another bank, Lloyds Bank. That is, now I have opened a CASH ISA account in 2 different banks, but they have separated 2 tax years and different banks. Do this Got it? Thank you.
Opened the first ISA Cash Account in January 23, and deposited some amount in February.
In June 23 of the second tax year, the additional amount was added to Barclays.
Opened an additional ISA CASH account at Lloyds Bank in June 23.