Taking Out An Isa.

[10ClarionSt]

Can I take out an ISA with a lump sum and just leave it at that until I withdraw the total amount? Or would I have to keep paying into it on a regular basis? TIA.

[donny48]

You can just put in a lump sum and not have to top up. Since the prime reason for an ISA is tax -free savings it is worth remebering that the first £1000 of interest is now tax - free anyway.

[Flonska]

if you are considering a cash ISA, this might help answer your questions:-

http://www.which.co.uk/money/savings-and-isas/isas/guides/cash-isas/cash-isa-rules-and-allowance

Organisations that offer a cash ISA may have additional conditions so it's best to check that the one you want meets all your requirements. Generally, within the annual limit you are not forced to put money into the account every year.

[ladybirder]

Donny is right Clarion. Unless is is a massive lump sum that is going to attract over £1k a year interest you would probably be better off in a good savings account. They are supposed to pay slightly more interest although I've not seen much evidence of that.

[Guilbert53]

If you have £20,000 to invest put in a Santander 123 Current Account which pays better interest than most ISAs.

You also get cashback on an Direct Debit you pay from that current account.

I get about £40 a month interest on my Santander 123 Current Account which has £20,000 in it.

[Guilbert53]

Here is the Santander 123 Current Account web page

http://www.santander.co.uk/uk/current-accounts/123-current-account

I also have a Santander Regular saver account which is paying me 5% but I can only pay in £200 a month.

I also have a Nationwide Regular Saver account which is giving me good interest and I can put £500 a month in that.

I fact many banks have current accounts that pay better interest that most ISAs so it is worth opening up a number of current accounts and spread your money rather than just one ISA (I have 3 current accounts all paying me good interest, better than ISA interest).

[Tuvok]

I went with Virgin this year - it was the best rate of interest ISA that I found.

[woofgang]

I have been using M and G and done quite well