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  • FIRST POST
    • Nourse79
    • By Nourse79 12th Oct 17, 6:32 PM
    • 28Posts
    • 2Thanks
    Nourse79
    Ford Money regular cash ISA Saver @4% on £250/month
    • #1
    • 12th Oct 17, 6:32 PM
    Ford Money regular cash ISA Saver @4% on £250/month 12th Oct 17 at 6:32 PM
    Hello everyone,

    On 23 May 2017, I opened a Ford Money regular cash ISA Saver @ 4% with £250/month - making a total of £2750 on 31.03.18.
    The last payment will be on 23.04.18 - making a total of £3000 on 30.04.18.
    I also have an "old" POPPY cash ISA with Coventry BS.

    I have not used the rest of my £20 000 ISA allowance yet as I don't know which amount I can put in and where before the end of this tax year.

    Is it £17 000 or £17 250 to be used before 05.04.18 ? and where ?

    I know I can not open another cash ISA with another provider this year. Coventry BS say I can not add the cash remainder to them as I already have put cash in with Ford and that's where I'm confused as I am not opening another ISA but topping up an existing one.
    Can anyone help ?
    Many thanks for input.
Page 1
    • YorkshireBoy
    • By YorkshireBoy 12th Oct 17, 6:53 PM
    • 29,609 Posts
    • 17,458 Thanks
    YorkshireBoy
    • #2
    • 12th Oct 17, 6:53 PM
    • #2
    • 12th Oct 17, 6:53 PM
    Is it £17 000 or £17 250 to be used before 05.04.18 ? and where ?
    Originally posted by Nourse79
    £17,250, and since Ford offer a 'flexible' ISA simply open a bog standard ISA with them for it.
    • xylophone
    • By xylophone 12th Oct 17, 6:57 PM
    • 23,611 Posts
    • 13,748 Thanks
    xylophone
    • #3
    • 12th Oct 17, 6:57 PM
    • #3
    • 12th Oct 17, 6:57 PM
    You will have used £2,750 of your allowance in the Ford RS ISA in this tax year.

    You could deposit £17,250 in another Ford ISA product before the end of the current tax year?

    https://www.fordmoney.co.uk/help/about-our-products/what-is-an-isa
    • eskbanker
    • By eskbanker 12th Oct 17, 7:12 PM
    • 5,886 Posts
    • 5,844 Thanks
    eskbanker
    • #4
    • 12th Oct 17, 7:12 PM
    • #4
    • 12th Oct 17, 7:12 PM
    I know I can not open another cash ISA with another provider this year. Coventry BS say I can not add the cash remainder to them as I already have put cash in with Ford and that's where I'm confused as I am not opening another ISA but topping up an existing one.
    Originally posted by Nourse79
    The ISA rules aren't about opening new accounts as such, but they prevent you from paying new money into more than one ISA of any given type in a tax year, so Coventry are right that you can't pay into one of theirs if you've paid into Ford's this tax year.

    However, as above, some providers, including Ford, allow you to pay into multiple accounts with the same provider by regarding them as being the same (split) ISA, so you can fund another Ford one.

    Or you could open a stocks and shares ISA with anyone if that fits with your saving and investing objectives and risk tolerance....
    • soulsaver
    • By soulsaver 13th Oct 17, 12:01 AM
    • 1,482 Posts
    • 534 Thanks
    soulsaver
    • #5
    • 13th Oct 17, 12:01 AM
    • #5
    • 13th Oct 17, 12:01 AM
    So note you need to pay that final £250 23.04.18 out of this years ISA - or you'll limit your options for a cash ISA next financial year as well.
    So pay at least £250 into Ford's 1% (IIRC) 2017/18 ISA before April and use that for the final monthly payment.
    • B_G_B
    • By B_G_B 13th Oct 17, 9:26 AM
    • 389 Posts
    • 395 Thanks
    B_G_B
    • #6
    • 13th Oct 17, 9:26 AM
    • #6
    • 13th Oct 17, 9:26 AM
    So note you need to pay that final £250 23.04.18 out of this years ISA - or you'll limit your options for a cash ISA next financial year as well.
    So pay at least £250 into Ford's 1% (IIRC) 2017/18 ISA before April and use that for the final monthly payment.
    Originally posted by soulsaver
    Alternatively, miss the last payment. Loss of interest approx 83p, but simpler option.
    • Nourse79
    • By Nourse79 13th Oct 17, 11:13 AM
    • 28 Posts
    • 2 Thanks
    Nourse79
    • #7
    • 13th Oct 17, 11:13 AM
    • #7
    • 13th Oct 17, 11:13 AM
    Alternatively, miss the last payment. Loss of interest approx 83p, but simpler option.
    Originally posted by B_G_B
    Hello there, Thanks to all for your advice.
    To recap : the easiest choice is to open a new FORD flexible ISA end of March 2018 with £17 250 AND miss the last payment of £250 in Ford RS ISA on 23.04.18.Right ?
    BGB, just a quick question : how did you work out the loss of interest for the last unpaid month ? Seems to be very little @ 83p.
    Cheers
    • eskbanker
    • By eskbanker 13th Oct 17, 11:17 AM
    • 5,886 Posts
    • 5,844 Thanks
    eskbanker
    • #8
    • 13th Oct 17, 11:17 AM
    • #8
    • 13th Oct 17, 11:17 AM
    BGB, just a quick question : how did you work out the loss of interest for the last unpaid month ? Seems to be very little @ 83p.
    Originally posted by Nourse79
    The last £250 would earn 4% (£10) if in the account for a year, so in a month would earn a twelfth of that, therefore £10 / 12 = 83p.
    • Speculator
    • By Speculator 13th Oct 17, 11:33 AM
    • 1,725 Posts
    • 1,320 Thanks
    Speculator
    • #9
    • 13th Oct 17, 11:33 AM
    • #9
    • 13th Oct 17, 11:33 AM
    Alternatively, miss the last payment. Loss of interest approx 83p, but simpler option.
    Originally posted by B_G_B
    Are you allowed to miss a monthly payment?
    • B_G_B
    • By B_G_B 13th Oct 17, 12:12 PM
    • 389 Posts
    • 395 Thanks
    B_G_B
    Are you allowed to miss a monthly payment?
    Originally posted by Speculator
    Yes. Multiple payments can be made each month up to max £250. Any money short of £250 can not be carried forward. Complete months can be missed.
    • Nourse79
    • By Nourse79 13th Oct 17, 12:52 PM
    • 28 Posts
    • 2 Thanks
    Nourse79
    The last £250 would earn 4% (£10) if in the account for a year, so in a month would earn a twelfth of that, therefore £10 / 12 = 83p.
    Originally posted by eskbanker
    Hi BGB, just found this Regular Savings Calculator here :

    https://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

    Seems to say that " After saving £250.00 a month for 11 months, you will have £2,804.61 in savings, meaning you've earned £54.61 interest" and "After saving £250.00 a month for 1 year and 0 months, you will have £3,064.61 in savings, meaning you've earned £64.61 interest

    That would be £10 loss. No ?
    • eskbanker
    • By eskbanker 13th Oct 17, 1:02 PM
    • 5,886 Posts
    • 5,844 Thanks
    eskbanker
    Hi BGB, just found this Regular Savings Calculator here :

    https://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

    Seems to say that " After saving £250.00 a month for 11 months, you will have £2,804.61 in savings, meaning you've earned £54.61 interest" and "After saving £250.00 a month for 1 year and 0 months, you will have £3,064.61 in savings, meaning you've earned £64.61 interest

    That would be £10 loss. No ?
    Originally posted by Nourse79
    No - the scenario being discussed is in between those two options, it's keeping 11 months worth of contributions but for 12 months, so it's only a month's interest on £250 that's being lost, the interest will still be earned on the other 11 £250s during that final month.
    • jimjames
    • By jimjames 13th Oct 17, 1:09 PM
    • 12,234 Posts
    • 10,760 Thanks
    jimjames
    Alternatively decide if a cash ISA is the right place for your money, there are other regular savers paying 5% and current accounts for larger amounts paying slightly less
    Remember the saying: if it looks too good to be true it almost certainly is.
    • soulsaver
    • By soulsaver 13th Oct 17, 3:24 PM
    • 1,482 Posts
    • 534 Thanks
    soulsaver
    Alternatively, miss the last payment. Loss of interest approx 83p, but simpler option.
    Originally posted by B_G_B
    The simpler option - OP appears has the money & appears to be that way inclined - would be to fund the Ford cash Isa now earning 1% pa while paying from it by SO the monthly payments in to the RS ISA, allowing them to contribute the 12th payment without impinging on cash isa options next year, and to earn the 1% tax free until earning the 4% for the final month.

    And ready to take advantage using 2017/18 ISA cash should Ford offer another RS in April.
    • Speculator
    • By Speculator 13th Oct 17, 6:18 PM
    • 1,725 Posts
    • 1,320 Thanks
    Speculator
    The simpler option - OP appears has the money & appears to be that way inclined - would be to fund the Ford cash Isa now earning 1% pa while paying from it by SO the monthly payments in to the RS ISA, allowing them to contribute the 12th payment without impinging on cash isa options next year, and to earn the 1% tax free until earning the 4% for the final month.

    And ready to take advantage using 2017/18 ISA cash should Ford offer another RS in April.
    Originally posted by soulsaver
    Hope Ford will allow £1666 pm for the next one!
    Last edited by Speculator; 13-10-2017 at 8:21 PM. Reason: .
    • Nourse79
    • By Nourse79 22nd Oct 17, 11:57 AM
    • 28 Posts
    • 2 Thanks
    Nourse79
    So note you need to pay that final £250 23.04.18 out of this years ISA - or you'll limit your options for a cash ISA next financial year as well.
    So pay at least £250 into Ford's 1% (IIRC) 2017/18 ISA before April and use that for the final monthly payment.
    Originally posted by soulsaver
    Hi Guys, a quick update after emailing Ford Money. Their reply :
    " we cannot allow an early payment into this account. If you plan on funding the account with £250.00 on 23 March 2018 the next payment allowed would be 23 April 2018. The Regular Save Cash ISA is not linked to calendar months but from the initial funding date."
    So, it's look like omitting the last payment in April is my only option and obviously opening near end of this tax year a Ford Money regular ISA with £17 250 to use up the remainder of my ISA allowance (currently with RCI Bank @ 1.30%).

    Thanks for all your advice.
    • AirlieBird
    • By AirlieBird 22nd Oct 17, 12:12 PM
    • 737 Posts
    • 494 Thanks
    AirlieBird
    So, it's look like omitting the last payment in April is my only option and obviously opening near end of this tax year a Ford Money regular ISA with £17 250 to use up the remainder of my ISA allowance
    Originally posted by Nourse79
    No it's not. Your other options are
    1. On 23 April transfer £250 from the 17250 you put into Ford's standard ISA this tax year or
    2. Deposit £250 to the Regular Saver ISA from non ISA savings and on maturity or when ready transfer that £250 to whichever ISA you want to deposit your remaining cash allowance in.
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