ISA help again please kind people!

johng_uk · 2 April 2008 at 6:30PM

Hi all and thanks for looking.

I need to fill up my 07/08 ISA allowance and require a little advice please. I can either go for the Nationwide 6.15% fixed rate for 1 or 2 years OR go for the Barclays 6.5% variable rate. Would the assumption be that Barclays rates will drop in the next ISA year and should I go for the fixed rate over 1 or 2 years instead?

Also, on the ISA subject. When do companies publish their 08/09 rates?

Thanks in advance.

Toastie · 2 April 2008 at 6:41PM

johng_uk wrote: »

Hi all and thanks for looking.

I need to fill up my 07/08 ISA allowance and require a little advice please. I can either go for the Nationwide 6.15% fixed rate for 1 or 2 years OR go for the Barclays 6.5% variable rate. Would the assumption be that Barclays rates will drop in the next ISA year and should I go for the fixed rate over 1 or 2 years instead?

Also, on the ISA subject. When do companies publish their 08/09 rates?

Thanks in advance.

You have 2working days. I think you have left it too late now to open an ISA. People have said how Barclays have no appointments, mine has no appointments until April 9th (the day i set up next years ISA) I don't know about other banks like nationwide but you will have to go in Branch and ask (providing you can get the 3K limit or so out by Saturday to pay in)

You won't get an online ISA unless you already bank with them.
Barclays will hopefully not drop there ISA for a year :A cause thats where my new one is being set up.

I think next tax year some more ISA rates my go up a little just so people transfer there existing ISA to them. It's just a waiting game now.

bristolleedsfan · 2 April 2008 at 6:50PM

Toastie wrote: »

Barclays will hopefully not drop there ISA for a year :A

quote]

U feeling lucky, vast majority of the population are expecting Base Rate decreases, a movement which is usually mirrored by variable rate savings accounts.

johng_uk · 2 April 2008 at 6:57PM

Keep us all hanging huh? lol

I can access my money immediately - I might give Nationwide a quick call. I might even sign up for the Halifax ISA (5.25%) as I can open it online, and transfer from my Halifax SAverf account, and then transfer the cash out after 5th April to my new ISA.

earlgrey_3 · 2 April 2008 at 7:11PM

johng_uk wrote: »

Would the assumption be that Barclays rates will drop in the next ISA year and should I go for the fixed rate over 1 or 2 years instead?

Most of the best variable rate ISAs gradually drop down the league from April on. The star of last year is rarely the star of the next. Even the government are at it. Look at where last year's chart topping NS&I Direct ISA is now.

With only 3 days to go your choice is narrowing to those still accepting for 07/08. Abbey say theirs can be still be opened in branch. I assume that means the internet one at 6.25% variable including a one year bonus. Otherwise you could plonk your loot in one with the intention of transferring.

My understanding is that the date of subscription is considered to be, by cheque, the date on which the cheque is received and accepted by the ISA manager, or, by debit card, the date authorisation is given by the investor, i.e the funds don't need to have cleared to qualify.

johng_uk · 2 April 2008 at 7:51PM

With only 3 days to go your choice is narrowing to those still accepting for 07/08. Abbey say theirs can be still be opened in branch. I assume that means the internet one at 6.25% variable including a one year bonus. Otherwise you could plonk your loot in one with the intention of transferring.

I have an Instant Access Savings Account with Halifax B.O.S. I have subscribed and directly transfered funds in an ISA for the 07/08 tax year - Paying 5.8%. This ensures my money is in the tax-free system.

Will I be penalised if I then transfer the funds in a weeks time to a better rate cash ISA?

jem16 · 2 April 2008 at 9:13PM

johng_uk wrote: »

I have an Instant Access Savings Account with Halifax B.O.S. I have subscribed and directly transfered funds in an ISA for the 07/08 tax year - Paying 5.8%. This ensures my money is in the tax-free system.

Will I be penalised if I then transfer the funds in a weeks time to a better rate cash ISA?

If it's a variable rate ISA then there should be no penalty. Check the T&C.

Mikeyorks · 2 April 2008 at 10:36PM

johng_uk wrote: »

A) I have subscribed and directly transfered funds in an ISA for the 07/08 tax year - Paying 5.8%. This ensures my money is in the tax-free system.

b) Will I be penalised if I then transfer the funds in a weeks time to a better rate cash ISA?

Well you've certainly got me confused! So .... do I take it that A) was achieved somewhere between 6:57pm and 7:51pm tonight?

In which case

..... there would certainly be a penalty. As the only 5.8% ISA that Halifax have on offer is a '1 year fixed rate'. And there is a 180 day interest loss for withdrawals / transfers out.

johng_uk · 3 April 2008 at 8:10AM

If it's a variable rate ISA then there should be no penalty. Check the T&C.

It's a fixed rate.

Well you've certainly got me confused! So .... do I take it that A) was achieved somewhere between 6:57pm and 7:51pm tonight?

In which case ..... there would certainly be a penalty. As the only 5.8% ISA that Halifax have on offer is a '1 year fixed rate'. And there is a 180 day interest loss for withdrawals / transfers out.

Lol - Sorry for any confusion. Yes A) was achieved between said times. I have a B.O.S savings account and due to the 2 working days left fact, I decided to open an online ISA with them. This ensures my money is tax free although it isn't at the best possible rate. As far as

goes - The money will only be in the account a matter of days so they can have the interest! As long as there is no penalty on the capital, I could transfer my cash into the Nationwide ISA, along with the £3600 for the new tax year.

Mikeyorks · 3 April 2008 at 8:24PM

johng_uk wrote: »

As long as there is no penalty on the capital, I could transfer my cash into the Nationwide ISA, along with the £3600 for the new tax year.

I'd look at what you've signed up to very carefully ... before you jump? This is from the Halifax site :-

Although it's best to leave a fixed rate Halifax ISA Saver open until the end of the fixed term, you can close your account or transfer out to another ISA Manager. However, you will lose an amount equal to 180 days' interest, calculated on the rate at which interest is paid on your account.

..... I read the italicised portion as clearly saying they will deduct from the capital .... if there is insufficient interest to defray the penalty?

johng_uk · 3 April 2008 at 8:45PM

Quote:
Originally Posted by johng_uk
As long as there is no penalty on the capital, I could transfer my cash into the Nationwide ISA, along with the £3600 for the new tax year.

I'd look at what you've signed up to very carefully ... before you jump? This is from the Halifax site :-

Quote:
Although it's best to leave a fixed rate Halifax ISA Saver open until the end of the fixed term, you can close your account or transfer out to another ISA Manager. However, you will lose an amount equal to 180 days' interest, calculated on the rate at which interest is paid on your account.
..... I read the italicised portion as clearly saying they will deduct from the capital .... if there is insufficient interest to defray the penalty?

The swines!! Aww well I guess it's only 0.35% on £3k for 1 year. 10.50 - Hardly bankbusting!

ISA help again please kind people!

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