Isas?

[Urban mammoth]

right, im at uni and have stayed in halls this year, all well and good, but i've been travelling back to play rugby and to see my gf. anyway, me and my parents sat down and decided it would be much easier to just live at home next year.

This has saved me nearly £3,000, so what my dad reccommended was to put the loan money i get into an ISA because i will be able to live off the money i get from working anyway.

what is an ISA?? and how do they work? what are the best ones (i heard halifax do a good'en)

and what would be the profits of putting about £1,200 every term in?

any help would be F.A.B!!

cheers

dan

[JT!]

An ISA is a high interest account, they do not tax you on your interest.

However, you can only put 3,000 in a taxt year.

Also, make sure you look out for hidden stipulations. The HSBC ISA is about 5%, but you have to have £15,000+ in or something like that, if you only have £3,000 you get alot less, like 3.5%.

Web savers are also woth looking into, you do get taxed on your interest, but you can put as much as you like in them.

[poopipe]

If you don't need the student loan avoid it like the plague.

I only borrowed 2 1/2 grand and I'm still paying it off in dribs and drabs 5 years later cos the bitches make it virtually impossible to do anything but pay the minimum every month. I could have covered the whole thing within 6 months of leaving university but they wouldn't have it.

Things have changed a bit since then because they got in a load of trouble for basically lying about the interest etc. but they're still extremely hard to get any information out of.

[munkee]

Get rid of the loan, pay it back... get rid of loans... loans = the devil, hell, death, murder, no life

[Michael Hardman]

Someone else that thinks like me, I put all my student loan inot an ISA, all 3 years worth of it and I'm one of the few that came out of uni with any money.

I had a job throughout uni so that paid for everything and my plan was to have money for a deposit on a house which will be a reality by this time next year.

If you don't need the student loan avoid it like the plague.

I only borrowed 2 1/2 grand and I'm still paying it off in dribs and drabs 5 years later cos the bitches make it virtually impossible to do anything but pay the minimum every month. I could have covered the whole thing within 6 months of leaving university but they wouldn't have it.

Things have changed a bit since then because they got in a load of trouble for basically lying about the interest etc. but they're still extremely hard to get any information out of.

Thats bullcrap my repayment leaflet says I have to pay a minium every month once I earn 15k a year but it says you can alter this and pay what you want. Im paying the minium as I heard your loan is scrapped when you retire and by paying the minuim Ill never pay more than 2/3's of my loan back before its scrapped. Also having 10k from 3 years worth of stundent loans wil lcome in very useful as I've already stated.

Think how long it will take to save for a deposit on a house, you need 25k these days and thats pushing it, renting is expensive I want my own house as soon as I start working full time.

Loans can wait and its the only loan I have.

An ISA is a high interest account, they do not tax you on your interest.

However, you can only put 3,000 in a taxt year.

Also, make sure you look out for hidden stipulations. The HSBC ISA is about 5%, but you have to have £15,000+ in or something like that, if you only have £3,000 you get alot less, like 3.5%.

Web savers are also woth looking into, you do get taxed on your interest, but you can put as much as you like in them.

If your a student you dont get taxed.

Im with Nationwide and last tax year i made a 4 figure sum out of interest, Im not complaining as the interest I make is more than that of the interest owed on the loan so it snot as if Im losing out and owing more and more money. I'm all covered for the future, aslong as the interedt I make in my ISA is more than that of the student loan ill be fininacial secure in that department. Aso teaching is pretty much a garenteed job, there always bloody wanted and I've worke din so many schools now hopefully getting a good rep that they will most likely take me back if I was to apply to work for them once I'm qualified.

Be sure its the right thing for you to do.

Edited May 2, 2006 by Michael Hardman

[JT!]

If you don't need the student loan avoid it like the plague.

If you don't need the loan, get it and wack it in a high interest acount.

If your a student you dont get taxed.

How about if you earn over £94 a week, then you do don't you?

[munkee]

Your forgetting the bigger picture here. One day your going to go out and want to buy something.. hmm lets say.. a car (strictly an example.. it could be a telephone connection) ? depending on how your gonna buy but 9 times outta 10 cash wont be an option. Therefore its likely your gonna end up going through a credit check. The fact youve taken out a loan will show up and if you are already in a bit of a unfavourable situation with money its going to make people think twice as to whether your good for the money at some point. Like i said bad example etc main point is.. dont take out a loan for the sake of it because it will show up on records. I know its a student loan etc ''everyone has them'' kinda thing, but when your getting on a bit and god forbid on your 3rd or 4th loan.. its going to look very sketchy to say the least and your going to be sat there watching discovery channel all day waiting for one of those ''failed credit blah blah'' companies looking to consolidate your debt and all that random shite than seems to crop up when money is mentioned. Its funny how loan lenders never seem to do a credit check now isnt it...i wonder why lol :-p

oh yea not specificly aimed at the topic starter, just thought id add something in though since ive had a few credit checks etc recently.

Edited May 2, 2006 by Spacemunkee

[Michael Hardman]

If you don't need the loan, get it and wack it in a high interest acount.

How about if you earn over £94 a week, then you do don't you?

Not sure, I'm not taxed now and I earn £250 a week through an agency but Im registrered as a student again as I'm off back to uni this September.

Your forgetting the bigger picture here. One day your going to go out and want to buy something.. hmm lets say.. a car (strictly an example.. it could be a telephone connection) ? depending on how your gonna buy but 9 times outta 10 cash wont be an option. Therefore its likely your gonna end up going through a credit check. The fact youve taken out a loan will show up and if you are already in a bit of a unfavourable situation with money its going to make people think twice as to whether your good for the money at some point. Like i said bad example etc main point is.. dont take out a loan for the sake of it because it will show up on records. I know its a student loan etc ''everyone has them'' kinda thing, but when your getting on a bit and god forbid on your 3rd or 4th loan.. its going to look very sketchy to say the least and your going to be sat there watching discovery channel all day waiting for one of those ''failed credit blah blah'' companies looking to consolidate your debt and all that random shite than seems to crop up when money is mentioned. Its funny how loan lenders never seem to do a credit check now isnt it...i wonder why lol :-p

oh yea not specificly aimed at the topic starter, just thought id add something in though since ive had a few credit checks etc recently.

Not true, studnet loans wont show up on your credit rating.

So why does my morgage (when I ge tone0 not show up if I was to take out a loan.

How many young people buy cars brand new these days, not many, their parents buy them for you or you buy second hand and by.

[JT!]

Not sure, I'm not taxed now and I earn £250 a week through an agency but Im registrered as a student

If you earn over £94 you interest gets taxed. Wether your a student or not.

[MaXsteri]

How about if you earn over £94 a week, then you do don't you?

I pay tax on mine, always have done seemingly regardless of how much i earn and whether i was a student or not.

But the inland revenue are useless so that rule may not apply to every other student

[off_topic] It took them TWO YEARS to adjust my tax code after i told them it was wrong [/off_topic]

[munkee]

Not true, studnet loans wont show up on your credit rating.

So why does my morgage (when I ge tone0 not show up if I was to take out a loan.

How many young people buy cars brand new these days, not many, their parents buy them for you or you buy second hand and by.

..... just because i cant be arsed to explain it all again.. google it..

http://www.lendingtree.com/cec/yourmoney/s...D=14000&KWCODE=

take a look at that.

At no point did i say your buying a car now.. i said at some point.

[Michael Hardman]

Yep pay it off as quickly as possible becasue that way the goverment are getting their money back, Ill leave it thanks, my bank can see I have a healthy savings account and have done since I started earing, I've never gone into debt with them and I'd more than likey take a morgage out with them so I cant see them refusing me.

[011001000110010101110010]

An ISA is a high interest account, they do not tax you on your interest.

However, you can only put 3,000 in a taxt year.

Also, make sure you look out for hidden stipulations. The HSBC ISA is about 5%, but you have to have £15,000+ in or something like that, if you only have £3,000 you get alot less, like 3.5%.

Web savers are also woth looking into, you do get taxed on your interest, but you can put as much as you like in them.

You can only have £3000 in one mini cash ISA. That 5% is earned from that not neededing £15000

[Tony Harrison]

Not sure, I'm not taxed now and I earn £250 a week through an agency but Im registrered as a student again as I'm off back to uni this September.

Ha ha, the Inland Revenue will come and get you...

[anzo]

Ha ha, the Inland Revenue will come and get you...

Depends. The tax year begins on the 6th of April, not the calender year. Therefore, if hes been working for less then the tax year on 250 a week, he might just get away with it.

The current tax allowance is a maximum of 4895 quid PER TAX YEAR. And although he earns approx. 13k a year, you don't pay tax until you hit 4895 quid and then thats it until your dead. Meaning that unless hes been working there for less than about 16/17 weeks, hes within the law. Keeping in mind that the new tax year started last month, so he can work a few weeks up to it, and then all 'history' is deleted, so to speak, and it all starts again. So, keeping all that in mind, he can work up to about the 25th August 06 tax free. And then your in the fun club of having half your wages taken away.

If your still registered as a student, thats tax evasion. So if I were you, I'd keep it quite mate.

I had a hell of a lot of trouble with the Inland Rev last year, they accused me of not paying any PAYE, even though its automatically deducted and out of my hands. Luckly, I got my tax papers and proved the bastards wrong.

I dont avoid tax, I only evade tax.

Edited May 4, 2006 by anzo

[anzo]

Wow, now I'm depressed...

Worked out my total tax rate...not exact, but roughly.

Annual rate - 16,000

Tax - 2080

NI - 1040

Total outcome - 12880

[JT!]

You can only have £3000 in one mini cash ISA. That 5% is earned from that not neededing £15000

Well, if you look on the HSBC interest rates you'll see that the % of interest goes up the more money you have in. The stated 5% is described as "you can earn upto 5%. WIth HSBC you have to have £15k to earn that 5%.

And yes, you can have more than £3000 in an ISA, but you can only pay in £3000 a year. I know becuase i have more then £3k in my ISA. I put £3k in just befor april, and another £3k in just after the 6th of April (new taxt yer).

[anzo]

Also note that with savings accounts, you get a big tax relief. Rightly so aswell.