Seven brilliant things you could do with your ISA savings

Think of all the good things you could do with your next pay cheque. You can go for a few drinks, see a movie or two, try out that nice new restaurant. All nice, lovely things you can do in the next couple of weeks. Or, you could do something fantastic. You could put some of that money in an ISA instead, and benefit from some tax free savings.

We know, we know. It doesn’t sound as fun as the IMAX, pad thai at that new place, then a couple of cocktails. But believe us. The benefit of an ISA is that if you can just hold off doing those good things now, you can do something amazing tomorrow. Or in five years time. Or ten. 

Don’t believe us? Here are seven brilliant things that you can do with your ISA savings. 

Just remember - these figures are all subject to the performance of your investments, and there’s always a risk involved.

How much can I save in an ISA tax free?

The maximum amount you can save in your ISA in the 2024/25 tax year is £20,000.

You can save that into just one ISA, or split it across multiple ISAs if that fits in better with your savings plan.

Brilliant thing 1: a beach holiday

Right, we know you’re still thinking about that pad thai and those cocktails, but stay with us. Head over to our ISA calculator and say you’re saving as much as those cinema tickets, restaurant meals and drinks would cost each month. Maybe you go out a few times. Call it £200 each month. 

In one year, with a balanced mynestegg stocks and shares ISA, that could be worth £2,425.

Do you know what else is worth that amount? 

Seven nights in Lanzarote - with flights - for two people, with over a thousand Euros to spend

Wouldn’t you enjoy those cocktails a little more on a sunny Canary Island beach? 

Brilliant thing 2: refresh your look

Wait, don’t start packing your shorts just yet. Hold on another year. Suddenly, your ISA could have almost £5,000 in it. 

The average person in the UK spends around £1,000 a year on clothes. And most of us will have a few outfits that have been lurking around in the back of the cupboard for years. 

That £5,000 could deliver a whole new look. And we’re not talking fast fashion here. A tailored suit, a high-end handbag. You could fill your wardrobe with Michael Kors shoes and still have enough left over to go out and show them off!

Brilliant thing 3: fancy a Caribbean cruise?

A seven day Caribbean cruise that starts and ends in Miami costs around £1,500 per person. Save up for two years, and you might be able to afford that, and flights, and spending money.

Save up for three years, and if your investment performs well you could have over £7,500.

That means you can make it a ten day trip, and head over to Disney World while you’re in Florida! All the rides, all the shows, and more than enough spending money to treat yourself to some mouse ears to wear while you’re enjoying yourself.

Surely that’s a bit more brilliant than a couple of takeaways and taxis each month? 

Brilliant thing 4: buy a used car

Maybe you’re not excited by holidays, or designer shoes, or even Disney World. That’s fine, some people aren’t. 

But after three years, with that £7,500, you’re deep into used car territory. 

In fact, a quick glance at a certain used car website suggests there are over a hundred thousand used cars to choose from under that price.

If you stay disciplined, save up for five years, then your ISA could be worth up to £13,000. That gives you double the number of cars to choose from. 

Cocktails tonight, or a great quality used vehicle in five years’ time? Why settle for a good drink, when you could have a brilliant car?

Brilliant thing 5: tie the knot

Do you know how long the average engagement lasts for in the UK?

13 months. 

After you’ve saved enough for a used car, if you hold off another 13 months, do you know how much money you could have in your ISA if your investments pay off?

£16,500.

The average wedding in the UK costs around twenty grand. But it does take two. So if you’ve found that special someone who’s also smart enough to save a few hundred pounds a month in an ISA, you’ll have enough for a wedding, and a honeymoon. 

Or you can scale it down. Get married outside of the peak summer season, and you’ll find that your ISA more than covers an absolutely brilliant wedding. 

Brilliant thing 6: buy a new car

Wait. Give it one more year. One more year of saving £200 per month into your tax free stocks and shares ISA. 

You could almost be at that £20k mark. In fact, you’re less than fifty pounds short. So you can pay for that wedding after all.

Or you can pay for a brand new Vauxhall Corsa, with enough left over to elope somewhere. It’s much less expensive than a big wedding, and much less stressful. 

Brilliant thing 7: buy a house!

For a three bedroom home, the average amount of money that you’ll need to put down a 15% deposit is £35k.

That’s a massive figure. That’s the amount of money you could spend on a Corsa, a cruise, and enough pad thai to feed your whole street. 

Or, it’s the amount an ISA could be worth after 11 years of saving. And that’s a 15% deposit. Some lenders will only ask you for 10%. Shop around and you could find a 5% mortgage - especially if you can show the bank that you’re responsible enough to save into an ISA for eight, nine, ten years.

At a time when so many people worry they’ll never own their own home, an ISA could be your ticket onto the property ladder. That’s not just good. That’s not just great. It’s brilliant.

Whatever brilliant thing you’ve got planned with your savings, it all starts with the tax free savings in your ISA. See how much you could save in your mynestegg ISA - tax free.

We’re always looking to make saving simpler. To learn more about how to set goals, save for the future, or choose the right pension or ISA, visit the mynestegg Knowledge Hub.