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Original poster

could someone explain how a mini ISA works to me - think I am confused..

30 replies

fairylights · 01/04/2008 13:51

I took out a mini ISA about a month ago and understand about only being able to put in £3000 a year, but I thought that after 1st April I could put more in, but having tried to put more in today it (internet banking)wouldn't let me and now I am wondering if the "year" starts on the date you took out the ISA? Can anyone tell me? I guess I can just open another one now as its 1st April anyway but would get more interest if i add to the first one i figure. TIA!

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frazzledbutcalm · 01/04/2008 14:10

As far as I'm aware you are only allowed to have 1 mini cash isa. £3000 is the limit per tax year. I assumed April 1st was the start of the new tax year but maybe its the 5th?

Original poster
fairylights · 01/04/2008 14:13

thanks frazzled..i definitely didn't realize you were only allowed one ever! Does anyone know when the tax year begins for real? ta

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Chocolateteapot · 01/04/2008 14:14

I think the new tax year starts 6th April not 1st April. And then on that date you can put in a further £3.7k or open an account at a different bank for that amount if you would prefer to do that. Hopefully someone will correct me if I'm wrong as I'm a bit new to this saving thing !.

Original poster
fairylights · 01/04/2008 14:19

ok have just googled "mini isa" and according to the Guardian website the tax year begins 5 April so that would explain that. And i can add to my ISA after then or i could open another one with a different provider. Think i have just answered my own Q but feel free to correct me !

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frazzledbutcalm · 01/04/2008 14:20

Just checked moneysupermarket.com - tax year 6th april to 5 april. Bit confusing but i think you can only have 1 mini isa and invest £4000, you can have 2 maxi isas

Original poster
fairylights · 01/04/2008 14:21

sorry x-post chocteapot, thanks and yes i am new to this savings malarky too...

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littlelapin · 01/04/2008 14:22

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littlelapin · 01/04/2008 14:23

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Original poster
fairylights · 01/04/2008 14:26

thanks too LL! I thought it had gone up but wasn't sure.

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pelafina · 01/04/2008 14:28

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Original poster
fairylights · 01/04/2008 14:30

yes i think that is what you can do pelafina, don't suppose you will earn much for the week that the first £3000 is in?? But i really am NOT a finance expert!

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pelafina · 01/04/2008 14:32

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pelafina · 01/04/2008 14:33

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MNHQ
JaneMumsnet · 01/04/2008 14:38

It's like a normal savings account, it's just tax free. So if you pay tax, you don't on your ISA earnings.

If you are a non-tax payer, you might as well just stick it in a normal account, as you can claim the tax back (am LL, BTW)

Chocolateteapot · 01/04/2008 14:41

I opened my Egg ISA in September last year and it says the interest is added annually so I'm assuming it will be credited next week.

DH has just opened a Barclays one which has a 1% bonus for a year giving a rate of 6.5%. If you don't pay tax then it doesn't make any difference at the moment as you can claim any tax deducted back (and I think there is a form where you can stop having the tax deducted from the interest when it is paid into your account.

But I think that if in the future you become a tax payer again, then it is advantageous to have the ISA as that remains tax exempt. Hope that makes sense and is accurate - it is what I have understood from trawling Martin Lewis's site.

pelafina · 01/04/2008 14:41

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pelafina · 01/04/2008 14:44

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Chocolateteapot · 01/04/2008 14:45

Just seen your last post. I think 22% is deducted at source when you get your interest paid. We have savings for DH's tax bill but have put that in a normal savings account in my name as I pay less tax than DH ie I pay the 22% that has been already deducted whereas DH would have to pay 40% on the interest. Again I have to keep saying this is as I understand it and hope that someone who truly does understand the whole thing comes along very shortly !

You wouldn't be a tax payer if you weren't earning or earned less than the personal tax allowance for the tax year.

littlelapin · 01/04/2008 14:49

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pelafina · 01/04/2008 14:50

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pelafina · 01/04/2008 14:53

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pelafina · 01/04/2008 14:53

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littlelapin · 01/04/2008 14:56

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littlelapin · 01/04/2008 14:57

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Original poster
fairylights · 01/04/2008 15:00

crumbs.. i opened a right can of worms there didn't i? V glad there are people out there with financial knowledge, i feel so clueless!
Also, as i am a SAHM i am not paying tax so maybe an ISA is pointless for me?! well too late now...

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