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Is it wise to put the emergency fund in ISA?

mancandy
by mancandy 21 September 2009  |  Comments 2 comments  |  Love Love  0 loves

Hi,

I am new to the UK, and fairly new to the exciting world of personal finance also. However, I am learning and progressing.

I do my banking in this country with Citibank. I'm considering getting a cash ISA with them (perhaps not the best one, but the easiest and most practical for me to monitor I think).

Is it a good idea to put one's emergency fund in a cash ISA?

Regards,

M.

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Comments (2)

  • SoftwareBear
    Love rating 212
    SoftwareBear posted

    yes if you don't plan on saving any longer term funds ... you only have fixed amount (£ 3600?) for a cash ISA per year ... once that amount has gone into the account (regardless of how much has come out) ... then you can't put more in ... year is april 6 -> april 5

    Posted on 21 September 2009 | Love Love  0 loves Report
  • MikeGG1
    Love rating 804
    MikeGG1 posted

    Mancandy

    It is very probably not the best idea, especially at the moment.

    ISAs are best for longer term savings because they can build up over the years.

    You can get tax savings over the short term but, unless you are a higher -rate payer, you can probably get a net rate that is higher than the ISA gross rate.

    Mike

    Posted on 21 September 2009 | Love Love  1 love Report

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