Stupid ISA question

[Pinkypurpleflowers]

I'm in a position to start saving a few hundred pounds a month and wanted to open an ISA for the tax-free benefits.

I assume you can drip feed money into an ISA in the same way you can a savings account? So a bit every month? You don't have to just do a lump sum when you open it?

Yes you can

Max you can out in is £20k in current tax year but you can contribute by degrees.

Depends on the type of account.

Assuming you're talking about cash ISAs, not stocks & shares ISAs, the highest rates are offered on fixed-term accounts which accept payments on opening or within a short period after opening. After that you can't add more.

There are other types, eg easy ISA, or limited-access ISA, which let you pay in additional money, but the interest rates are lower. Limited-access accounts (eg up to 4 withdrawals a year) usually offer higher interest rates than completely easy-access accounts.

Depending on your tax situation, you might be better off with a (non-ISA) regular saver for a year, as some have far higher rates of interest than easy-access ISAs.

I had a fixed rate regular saver cash ISA with a local building Society a few years ago. I could vary the amount I paid in each month, so long as I paid in every month. The interest rate was higher than any of their other ISAs and it worked well for me. I paid in for 12 months then interest was paid at the end and I moved the balance to another cash ISA with another provider.