antnee
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Registered: 30th Dec 07
Location: Cov Drives: Clio 197
User status: Offline
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Im thinking of ways to make money go further while I'm at uni, and had a good idea (so I think)
Students can get current accounts with a £3000 interest free overdraft, well, if I took one of those accounts out, I could then take the majority of the overdraft out and stick it in an ISA.
I've got another lump of money which should be earning me interest, this is likey to tip me over the new £5100 cash free limit on ISA's, over that limit is taxed based on income, (20%, 40%, etc), well if I don't have an income, would that still effectively be tax free?
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Limecat
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Registered: 25th Jun 05
Location: The Internet
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AndyKent
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Registered: 3rd Sep 05
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quote:
Originally posted by antnee
Im thinking of ways to make money go further while I'm at uni, and had a good idea (so I think)
Students can get current accounts with a £3000 interest free overdraft, well, if I took one of those accounts out, I could then take the majority of the overdraft out and stick it in an ISA.
I've got another lump of money which should be earning me interest, this is likey to tip me over the new £5100 cash free limit on ISA's, over that limit is taxed based on income, (20%, 40%, etc), well if I don't have an income, would that still effectively be tax free?
Technically, yes it would be tax free but seriously, it's hardly worth it.
Assuming you stuck £5000 in there and got 3% that's only £150 in your pocket. It's not worth the hassle and risk of forgetting to put the money back into the student account before you start incurring interest.
It's called 'stoozing' by the way.
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dannymccann
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Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Yes it is a good idea, if interest rates were favourable. As Andy said, its worth next to fuck all really
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Ben G
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Registered: 12th Jan 07
Location: Essex
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should've had this idea a few years back when rates were 6% odd. not worth it right now tbh 
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Aaron
Member
Registered: 9th Aug 04
Location: Cottingham, East Riding
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This was what my Mrs did when her student loan back when she was at uni (when rates on the ISA she had were 6.5%)
Now though, its hardly worth it. The best cash ISA these days is at Santander i think (i have one)
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Marc
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Registered: 11th Aug 02
Location: York
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ISA's are poo now
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Bonney
Member
Registered: 14th Nov 04
Location: St Helens
User status: Offline
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quote:
Originally posted by Marc
ISA's are poo now
Seconded.
The intrest rate on mine was something like 4.5% (off the top of my head) now its down to around 2.5%.
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Aaron
Member
Registered: 9th Aug 04
Location: Cottingham, East Riding
User status: Offline
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Mines 3.5....and it tracks the BOE base rate if there are any changes.
Still shit though.
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
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Not worth the effort really.
Budget and stick to your budget.
Excel spreadsheet everything, that'll make your money go further.
No need to buy expensive car mods or gadgets you don't really need.
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