Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
Page 3
  • Little Chicken
    Thanks Baldur - i thought that was the case, but just wanted to check ;0)
    Save me from spending...
    Sealed Pot Challenge 2008 - £1004 2009 - £1139 2010 - £1260 [SIZE=2][B][COLOR=darkorchid]2011 - £1557 2012 - £740 No 195 Target £[SIZE=2]1k
  • jamieslucky7
    I'm planning on puttin £3600 in to an ISA next week. What happens when April 2009 rolls around? Can I simply leave that money + interest earned in the account and start earning tax free interest for 2009/10?

    Thanks.
  • Baldur
    I'm planning on puttin £3600 in to an ISA next week. What happens when April 2009 rolls around? Can I simply leave that money + interest earned in the account and start earning tax free interest for 2009/10?
    Originally posted by jamieslucky7
    Yes - and every subsequent year until you decide to withdraw it.

    You can also deposit your new ISA allowance in each subsequent year, either in that ISA or with a different ISA manager and, if you wish, transfer the ISA funds if a better interest rate is offered by a different ISA manager.
  • aldo_pearson
    Transferring ISA Mid-Tax Year
    Hi,

    I have been paying into a Cash ISA with HSBC for a few years and would now like to move to another provider. I have paid into the HSBC ISA this tax year - can I transfer all the funds to another provider and then continue paying into the NEW ISA for the remainder of this tax year? Or can I only pay into one ISA, i.e. the HSBC one, for this tax year, then transfer in April?

    Many thanks,

    Alan
    • david78
    • By david78 13th Jun 08, 10:48 PM
    • 1,586 Posts
    • 583 Thanks
    david78
    I have been paying into a Cash ISA with HSBC for a few years and would now like to move to another provider. I have paid into the HSBC ISA this tax year - can I transfer all the funds to another provider and then continue paying into the NEW ISA for the remainder of this tax year?
    Originally posted by aldo_pearson
    Yes. If you have paid (say) £2000 in the ISA so far, you can transfer it to a new provider then top up the new account with £1,600.

    Be careful if you are transferring to a fixed rate ISA though, as some of these do not let you make additional payments once the transfer in has been made. In such cases it may be better to wait until you have topped up the account first. Some ISA providers (e.g. Nationwide) allow you to hold a mix of fixed rate and variable rate accounts so you can get around this problem with them.
  • veronica46
    ISA held as cash in a stocks and shares ISA
    I have cash held in a stocks and shares ISA (which my ex put in my name and which is now mine) but know absolutely nothing about investing it in stocks/shares. I am wary of doing so, as i cannot afford to lose it.
    Would it be better for me to withdraw it out of this type of ISA and put it into a cash ISA ?Because at the moment i am not getting anything like the interest I would get on a cash ISA......
  • StanLFC
    Newbie Questions
    Great thread, very helpful so far!

    I want to start saving and I'm going to open a Cash ISA soon that I will drip feed up until the end of April.

    I am a total newbie to this, so just have a couple of questions please.

    1) If i want to withdraw money from the ISA before April 5th, does it cost me to withdraw it?

    2) If I deposit say £3000 of my allowance over the year, but withdraw say £1000 before the end of the tax year, do I only earn interest on what is in the ISA on April 5th? I am not sure how the interest earned, I find that a bit confusing:confused:

    3) Am I right in thinking that once the yearly allowance is up, you can just leave the money in the ISA, earn your interest and then start adding your next years allowance? Then at the end of the 2nd year, say if you have £6000 in total in there, do you earn interest on the whole £6000 or just the "new" money added in the current tax year?

    I hope I am not being to stupid haha, and I appreciate any help!

    Stan.
    Last edited by StanLFC; 23-06-2008 at 7:20 PM.
  • Baldur
    1) If i want to withdraw money from the ISA before April 5th, does it cost me to withdraw it?
    Originally posted by StanLFC
    It depends on the Terms & Conditions of your particular Cash ISA account, but most easy access Cash ISAs do not incur a withdrawal fee BUT you cannot replace that withdrawn money and you lose its tax free status for ever.

    2) If I deposit say £3000 of my allowance over the year, but withdraw say £1000 before the end of the tax year, do I only earn interest on what is in the ISA on April 5th?
    Interest is earned on the running balance, so you would earn interest on £3,000 (plus any compounding interest) until you withdrew, then on £2,000 (plus any compounding interest).

    3) Am I right in thinking that once the yearly allowance is up, you can just leave the money in the ISA, earn your interest and then start adding your next years allowance? Then at the end of the 2nd year, say if you have £6000 in total in there, do you earn interest on the whole £6000 or just the "new" money added in the current tax year?
    You would earn interest on the £6,000 as well as on any interest which has accumulated in the account.

    You appear to be thinking in multiples of £3,000 - the old Cash ISA allowance. The allowance is currently £3,600.
  • StanLFC
    Thanks Baldur for the information, I think I understand what an ISA does now

    BUT you cannot replace that withdrawn money and you lose its tax free status for ever
    I understand about the not being to replace withdrawn money etc, but you say I lose its tax free status for ever? On what do I lose this? The rest of the money in the ISA?

    Finally, I would like to open an ISA asap. Is it possible you can recommend 1 or 2 easy access ones that are decent?

    Thanks again.
  • Baldur
    I understand about the not being to replace withdrawn money etc, but you say I lose its tax free status for ever? On what do I lose this? The rest of the money in the ISA?
    Originally posted by StanLFC
    Only on the amount which you withdraw (i.e. on any tax-free compound interest that it would have earned over the years while it was sheltered in the ISA account) as it can never be replaced.

    Finally, I would like to open an ISA asap. Is it possible you can recommend 1 or 2 easy access ones that are decent?
    Not personally, as all of my current ISAs are Fixed-Rate ones at the moment. Suggest that you have a look through this post, here and maybe check out here.
  • StanLFC
    Only on the amount which you withdraw (i.e. on any tax-free compound interest that it would have earned over the years while it was sheltered in the ISA account) as it can never be replaced.


    Not personally, as all of my current ISAs are Fixed-Rate ones at the moment. Suggest that you have a look through this post, here and maybe check out here.
    Originally posted by Baldur
    Yeah understood now, cheers for the help.

    Had a look at the links and I'm going to open an Icesave ISA soon
  • EmilyW
    What if I put too much in my ISA?
    I've read the rules on ISAs but I'm not clear what happens if you go over the £3600 limit.

    1)If I invest, say £4000 in one year, do I lose the tax exemption on all the money or just the additional £400 pounds?

    2)Next year, do I earn tax free interest on the whole amount, or just the £3,600?

    Thanks!
    • Lokolo
    • By Lokolo 28th Jun 08, 1:53 PM
    • 19,812 Posts
    • 14,861 Thanks
    Lokolo
    1) usually the £400 but theres the chance on the whole lot

    2) stays tax free forever on the whole lot (unless the interest isn't paid into the ISA, make sure it is)
  • Taxi
    Hi, just a quick question on ISA's, I checked the thread but couldn't find a similar question..
    I opened an ISA last year, and filled up the £3,000 allowance. Now, I had to take that out in May this year, without adding anymore since April.
    Now, I'm ready to start saving again, do I still have an allowance this year or have I messed it all up by withdrawing?
    Can I transfer this to another account (I only have like £40 interest in there from last year) and start saving there?

    Many thanks

    Taxi
    • Lokolo
    • By Lokolo 7th Jul 08, 11:00 PM
    • 19,812 Posts
    • 14,861 Thanks
    Lokolo
    You can transfer the £40 to a new ISA and fill the new ISA up by £3600 (the limit from this year on is £3600).

    But you must transfer the £40 using an ISA transfer form.
  • Taxi
    Excellent news thanks
    And thanks for the super quick reply too!
    • abri123
    • By abri123 15th Jul 08, 8:14 PM
    • 4 Posts
    • 0 Thanks
    abri123
    I have £400 in a Natwest ISA that I opened in 2007/2008 tax year. I then opened a Natwest e-ISA in 2008/09 tax year which so far I have deposited £2000 into. The original ISA still contains the £400. Will this keep earning interest as well as the new ISA, or will no further interest be paid into this account? Is it best to leave the £400 where it is, transfer it to the new ISA, or withdraw it? Please help/advise.
  • Anoop
    Hi people, my first post so please be gentle.

    Now, I am sure this has most probably been asked but i am still confused and looking for clarity, so apoligies if this is repeating something someone else has already asked.

    I saved the maximum £3000 isa allowance last year (07/08) with ING, but then transfered this come the new tax year in April to Icesave. Now where I am confised and need clarity is, am I allowed to add this years (08/09) allowance £3,600 on top of the £3,000 that I already have in Ice save, or can I only just add in £600 to top it up to the allowance only.

    I did phone and ask Icesave this question but kind of got told no, and that I have used the allowance, maybe I am just easily confused! A

    Anyway your help would be mostly appreciated

    Anoop
  • RayWolfe
    You have another £3600 for this financial year ... and another £3600 next year ... and another ... well, you get the picture.
  • sarah2682
    Two ISA's?
    Hiya,

    Can someopne please verify this for me.......

    I have an online isa which i have payed £3600 into this tax year so obviously I cannot put any more money into this isa this tax year, but i already have a second isa with my bank which i opened several years ago but have not payed nay money into for several years, can i put money into this isa this tax year???

    Thanks
    Sarah
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

324Posts Today

2,950Users online

Martin's Twitter