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ISA's

(4 Posts)
islandofsodor Thu 21-Aug-08 17:48:59

For the past 2 and a half year dh and I have each been paying £500 per month into a stocks and shares ISA. It hasn't done particualrly well, we havn't lost but havn't gained and come September we will need to draw out of the ISA 3 times a year.

I therefore feel that we should look into other savings scehems as it is too short term for the stock market.

So far this tax year we have paid in £3,000 each. If we suspend our monthly payments are we allowed to take out a cash ISA each for the remaining £3,000 (I think the cash ISA limit is £3,700 per year) or do we need to wait until the next tax year to take out a cash ISA.

We are thinking that we will put £300 per month each into a cash ISA then save £200 each in a children's regular savings account with high interest. It is their school fees we are saving for so it's not like we are trying to avoid tax by putting it in their name, it is for them if you see what I mean.

fiodyl Thu 21-Aug-08 21:13:50

The limit is £7200 in each tax year, of which only £3600 can be in cash.

I'm pretty sure you can open a separate cash only ISA as long as you don't put more than the total amount in them jointly.

You don't usually have to pay tax on the interested earned in a childrens account, but if a parent pays in money that means more than £100 will be earned in interest then you will pay tax at the parents rate.

mum2oneloudbaby Sat 23-Aug-08 10:45:45

depends on the isa if it is a mini stocks and shares isa you can do the mini cash anywhere no problems. however as you are paying £500 per month each into separate ISAs i would guess it will be a maxi and in which case you may only be able to do the cash isa with the same provider as i believe you can only opt maxi/mini at the start of each tax year.

you need to talk to your provider.

islandofsodor Sat 23-Aug-08 16:05:03

Mini and Maxi ISA's no longer exist apparently. Jst cash and stocks/shares.

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