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Financial advice needed!

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Hello everyone. I need your help! I currently pay into a cash ISA, I was wondering if I withdraw money out of it am I allowed to put the exact same money back into it within the tax year?

 

Also, I have a variable mortgage. I want to put any extra cash that I have spare a month into the mortgage so that I can pay it off quicker. Its pointless saving at the moment so I want to pay my mortgage off instead. Does anyone else do this?

 

Thanks

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No, once you've taken it out your cash ISA, you can't put it back in again unless you've got some of the tax year's allowance left.

 

Paying it off your mortgage instead is a good idea if the interest rate on your ISA is lower than that of your mortgage.

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No, once you've taken it out your cash ISA, you can't put it back in again unless you've got some of the tax year's allowance left.

 

Paying it off your mortgage instead is a good idea if the interest rate on your ISA is lower than that of your mortgage.

 

 

I mean, if I take £300 out, can I put the £300 back in within the same year as long as I don't go above the allowance of £3600 in the same tax year?

 

I was wondering if paying off my mortgage was a good idea, 'cos the money I put can't be spent like in a savings account.

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I mean, if I take £300 out, can I put the £300 back in within the same year as long as I don't go above the allowance of £3600 in the same tax year?

 

Yes, you can put it back. It doesn't matter if it's the same money/amount as long as you don't exceed a total deposit of £3600 per tax year.

 

I was wondering if paying off my mortgage was a good idea, 'cos the money I put can't be spent like in a savings account.

 

With some mortgages if you need your money back you can take out any overpayments you've made. You'd have to check the small print on yours.

 

If you can't take the money out again, then you've just got to make a judgement call - make extra payments on the mortgage and save yourself some interest, or hold onto the money long enough for savings/ISA interest rates to go up.

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Thankyou very much old bloke. I was thinking about applying for the cash e-ISA through HSBC, the rate is 2.2%. I've currently got a normal cash ISA with them but its only 1.1% I think.

 

I'm off tomorrow morning so I think i'll ring the HSBC mortgage centre and ask them some questions.

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I mean, if I take £300 out, can I put the £300 back in within the same year as long as I don't go above the allowance of £3600 in the same tax year?....

To be clear on this:

 

1) If you have already subbed £3600 in this tax year, and you take £300 out, you cannot put that £300 back in, in this tax year.

 

2) If you have subbed, say, £3000 in this tax year and you take £300 out, you can put £300 back in again in this tax year, but that would then mean you have subbed £3300 for the tax year.

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I drew some out of my isa as the rate was so poor and bought premium bonds

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To be clear on this:

 

1) If you have already subbed £3600 in this tax year, and you take £300 out, you cannot put that £300 back in, in this tax year.

 

2) If you have subbed, say, £3000 in this tax year and you take £300 out, you can put £300 back in again in this tax year, but that would then mean you have subbed £3300 for the tax year.

 

 

Thanks ginner. What I mean is, if I haven't yet subbed £3600 in the tax year can I take £300 out and put it back in before the tax year ends? I suppose what i'm asking is can I dip into the e-ISA by putting money in and out as long as I don't go above £3600 before the tax year ends?

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I drew some out of my isa as the rate was so poor and bought premium bonds

 

The trouble with this is premium bonds are linked to interest rates,so the lower the rate gets, less prizes are paid out and chances of winning become even more remote,might as well use any interest from an isa and have a go on the lottery.

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