Tell us you cash ISA questions
Comments
-
Strictly you have broken the rules. However for £40 and within your annual limit it will not be a problem.
HMRC may contact you in 2017 and tell you not to do it again but you will not be in serious trouble.0 -
Have you paid new money into two different cash ISAs?Hi, I've read on the forums that it is ok to open 2 isa's in one tax year. One can be funded by new money up to the allowance and one by transfer from a previous years isa.
My problem is that I opened a new one earlier this year with new money and now another which I'm transferring an old fixed rate isa that has expired to. I think this is ok but unfortunately when opening it I thought it required an initial deposit and transferred a nominal £40 in which is new money although does not take me over the allowance.
Question is if I now remove the £40 will I still be within the rules ? I've tried calling the HMRC Isa help line but I could tell that the guy didn't have a clue. His response was just leave it and we'll contact you after April 2017.
If yes you've broken the rules
If no you're okay
It's that simple
Cheers fj0 -
Hi folks,
We've just updated our Cash ISA guide to include FAQs at the end. We'd love to know if we've missed anything so if you've got an ISA question we've not already answered, post it below and we'll try to help.
Thank you
MSE Sally
MSE Sally, could you correct the title of this thread please.
Cheers fj0 -
First ever post ! My wife has a fixed ISA, first paid in year 2012/2013 and which has been with same provider until now. It expires in Jan 2017 , but with such low rates we want to cash it in and pay into fixed 1 year bond with TESCO. Is there any penalty is we do this ?0
-
First ever post ! My wife has a fixed ISA, first paid in year 2012/2013 and which has been with same provider until now. It expires in Jan 2017 , but with such low rates we want to cash it in and pay into fixed 1 year bond with TESCO. Is there any penalty is we do this ?
As long as you move the money after the fixed rate has expired in January, you wouldn't incur a penalty.0 -
Martin's (he is quoted as the person who updates the page) best buy advice doesn't appear correct on the fixed term ISA best buys page as of 16/05/2017: " At the moment, there aren't ... any four- or five-year ISAs that beat the three year ISA listed."
The Virgin 5 year product, including the early transfer out penalty, appears to me to beat every other fixed term product in the table over any time frame except for the one year Bank of Cyprus product for one year.
So unless you know you want the money back at the start of year two, shouldn't the advice be take out the five year product knowing that the longer you hold it the better it gets?
For example if it turns out that you need the money at the start of year 4, the three year ISA from Coventry BS gives 1.4%, while the Virgin 5 year surrendered early gives 1.46% (according to the tables quoted).
The difference in this case is only £37 (ie £888 vs £851 interest), but I'd rather have the increment than not.
Is the table wrong, am I reading it incorrectly, or is the advice wrong?
Posted in the spirit of trying to help all readers not as a smartass, and from someone equally disposed to any listed provider.0 -
sorry new to this -so dont know if in the right place.
Additional allowance isas - there is a lot of discrepancy in what I have been told by various building societies / banks - even as to what they call them. One society calls them inheritance isas and says you can only have one and if you have a number of isas involved with different societies they all have to be combined into this one inheritance isa - also that it will always carry the tag of inheritance isa and can't be transfered by the new owner into a different cash isa. A bank I have spoken to says there is no problems like that as any isas with them just get changed into the name of the new holder. Lots more variations. Can banks etc just make up their own rules as to how they treat this problem or is there supposed to be some sort of conformity. And why do you not see the interest rates posted?0 -
The official term is "additional permitted subscriptions". Banks find it easier to monitor the additional subscriptions by having a separate product.sorry new to this -so dont know if in the right place.
Additional allowance isas - there is a lot of discrepancy in what I have been told by various building societies / banks - even as to what they call them. One society calls them inheritance isas and says you can only have one and if you have a number of isas involved with different societies they all have to be combined into this one inheritance isa - also that it will always carry the tag of inheritance isa and can't be transfered by the new owner into a different cash isa. A bank I have spoken to says there is no problems like that as any isas with them just get changed into the name of the new holder. Lots more variations. Can banks etc just make up their own rules as to how they treat this problem or is there supposed to be some sort of conformity. And why do you not see the interest rates posted?
The rules are that you can choose to use the additional permitted subscriptions with the same bank(s) that the deceased held their ISA(s) with, up to the value of the ISA with each provider, or choose to have the additional permitted subscriptions with another provider. Once you have made an additional permitted subscription, all further additional permitted subscriptions for that ISA must be with the same provider. Any unused allowance for additional permitted subscriptions for that ISA cannot then be transferred to another provider.
Once you have deposited the money in an ISA under your name it is treated as previous year subscriptions and can be transferred under normal ISA rules.0 -
Just have a question with the LISA / S&S ISA and a cash ISA.
I opened a S&S ISA, and have paid into it within the last week with Moneyfarm.
I wanted to open the regular saver ISA with Ford, but it said I couldn't, as I had already opened an ISA in this year. I presume this is a cash ISA.
I want to open a LISA (either cash or S&S) ISA for retirement later this year, possibly with Nutmeg. I had intended to put new money in it in Feb-Mar 2018 (totally new money, from an existing maturing savings account)
Am I allowed to do all three?0 -
Yes, you are allowed to fund one each of cash, S&S and Lifetime ISAs in any given tax year (and an Innovative Finance one too), provided the aggregate total of new money is within the £20K annual allowance.
However, you can't open a Ford regular saver ISA as they stopped offering them yesterday after the overwhelming demand for them....0
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards