santander flexible isa 3.5pc coming off sale

oxenryd · 26 March 2010 at 10:54AM

Just been told by their call centre it is coming off 29th march

dreamypuma · 26 March 2010 at 1:05PM

oxenryd wrote: »

Just been told by their call centre it is coming off 29th march

There's a surprise!

Thank's for the confirmation (Even though it was from Santander, who we all know don't know their...)

ses6jwg · 26 March 2010 at 1:17PM

I was told 2nd May at branch

Ingsy · 26 March 2010 at 1:36PM

That's a shame, my limit is full for this year, but I was hoping to open one of these in the new year.

gunmaker · 26 March 2010 at 1:48PM

I was told by my local A&L branch today that it will still be available after 29th March but @ 3.2% NOT 3.5%.

You cannot open an account @3.5% online now but you can by visiting your local branch. The wife & I are going this afternoon to open one each. We will not be depositing any cash in them until the new tax year which they said was OK.

WitNick · 26 March 2010 at 2:12PM

I was just advised to try and apply for the Flexible ISA online to avoid the queues LOL. Deary me Santander your staff dont know that the online applications were taken down over a week ago

jh2009 · 26 March 2010 at 2:47PM

Ive paid my full ISA limit for the year.

But could you open the 3.5% with £1 today before the 3.5% rate goes, (even though i paid the maximum elsewhere), then withdraw the £1 the day after 6 april when i pay in next years contribution but keep the higher rate for next years contributions.

I doubt id get a bill for tax on a weeks tax free interest of £1!

Would it affect my existing ISAs? My understanding is if you open multiple ISAs the first one you opened gets the tax relief, with all others losing that status. So my existing isa would be ok.

dreamypuma · 26 March 2010 at 3:48PM

A

jh2009 wrote: »

Ive paid my full ISA limit for the year.

But could you open the 3.5% with £1 today before the 3.5% rate goes, (even though i paid the maximum elsewhere), then withdraw the £1 the day after 6 april when i pay in next years contribution but keep the higher rate for next years contributions.

I doubt id get a bill for tax on a weeks tax free interest of £1!

Would it affect my existing ISAs? My understanding is if you open multiple ISAs the first one you opened gets the tax relief, with all others losing that status. So my existing isa would be ok.

If you have used your full cash allowance for financial year ending April 2010, then you can not deposit a penny in another cash ISA, until the new financial year starts. (unless of course you are transferring said monies, which this account does not accept)

So in answer to your question: No

I don't think I understand the second part of your post, however I can't understand why anyone would surrender the accumulative effect of multiple years tax free status on their old money for 3.5% with Santander, unless they have very little old money.

jh2009 · 26 March 2010 at 4:40PM

Thanks for your answer.

Im aware that you cant legally pay in more than you're allowed into an ISA.

I looked at the HMRC website:

http://www.hmrc.gov.uk/isa/faqs.htm#15

Q. What if I pay into too many ISAs?
A. If, by mistake, you put money into more than one ISA of the same type in the same tax year the payment into the second ISA is invalid, and you are not entitled to any tax relief on investments held in the second ISA.

You cannot correct this mistake by simply closing the second ISA. Instead, you should call the ISA Helpline and explain the problem to them. They will advise you what action you need to take.

Q. What if I pay too much money into my ISAs?

A. If, by mistake, you put mote than £7,200 into your ISAs in a tax year, the excess payments are invalid, and you are not entitled to any tax relief on investments purchased with the excess payments.

You should not try to correct this mistake yourself. Instead, you should call the ISA Helpline and explain the problem to them. They will advise you what action you need to take.

So my thoughts are, walk into santander, accidently paying £1 into a 3.5% account, then after 6th april, realise my mistake and own up. Obviously by then id have the 3.5% account open for new money for the next year with the 3.5% rate.

The 2nd part of my question was if i paid £1 into a santandar isa, would it affect my ISA for 2009/10. (ie would it all lose its tax status). Based on the above the answer is no.

gunmaker · 26 March 2010 at 4:56PM

jh2009 wrote: »

Ive paid my full ISA limit for the year.

But could you open the 3.5% with £1 today before the 3.5% rate goes, (even though i paid the maximum elsewhere), then withdraw the £1 the day after 6 april when i pay in next years contribution but keep the higher rate for next years contributions.

I doubt id get a bill for tax on a weeks tax free interest of £1!

Would it affect my existing ISAs? My understanding is if you open multiple ISAs the first one you opened gets the tax relief, with all others losing that status. So my existing isa would be ok.

My wife and I have just opened a Flexible ISA at an A&L branch and didn't need to deposit any money today. The accounts are ready to receive money on April 6th which we can do online by transfer from an A&L savings account.

OneADay · 26 March 2010 at 5:08PM

Glad I saw this post, just booked appointment for 29th

.

santander flexible isa 3.5pc coming off sale

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