Cash ISA Discussion/Question

lisyloo

Yes.

Transferring an ISA from a previous tax year will not affect your current allowance.

Margaret_Millne

May seem a silly question, but with the start of the new Tax Year do I have to open a new ISA or can I put more money in the existing one?

lisyloo

You can just use the existing one if you wish.

payless

Can't answer for all providers - but with C&G, they make you open a new account if you did not make a contribution in the previous year.

System

Abbey Mini Cash ISA (postal). I picked up their leaflets today. One says "It's one rate for all (5.1%) whether you have £1 in your account or £3000." The other leaflet says: "If the balance of your account falls below £3000, interest rates will be equivalent to Easy ISA rates" (ie 4.05% up to £6000). Which is correct?

Kazza242

Paul,

Your money will earn 5.10% interest provided you have £1 or more in the account. The Abbey Postal ISA is not tiered.

http://www.abbey.com/index/savings_home/tax-free_savings_home/interest_rates_savings_variable_savings_postal_isa.htm

katmin2

after finding out that our endowment mortgage would have a shortfall we talked to the bank (T.S.B) and they advised us to invest in a mini cash ISA to cover the shortfall, but unfortunately we are receiving income support as my husband and myself are disabled and unable to work anymore, this year when we applied for our usual housing benefit we were turned down because we had this ISA, as it it is considered a savings account, even though we explained to them that it was purely and sumply a way to ensure we had enough money to repay our mortgage loan when it became due, they would not accept this explanation and we had to cancel the ISA and make different arrangements with mortgage lenders, so please beware, any advice given by banks should be thoroughly questioned before taking them up on it.

dunstonh

any advice given by banks should be thoroughly questioned before taking them up on it.

Although i am no fan of bank advisors, you could question not the advice from the bank but the DSS.

You could consider the endowment is a savings product. Have they included that as your savings. Chances are they havent. A letter from the advisor on headed paper to the DSS saying that the ISA is not be savings purposes but linked to the mortgage repayment due to endowment shortfall should help the DSS change its mind.

I did something similar last year and it was enough for the DSS to remove it as personal savings.

kawan2

Hi!

I am a newbie to this site.

For argument sake, I have the following cash ISA (rates are fictitious):

£3000 with Smile - 2002 at 4%
£3000 with Kent Reliance - 2003 at 4.5%
£3000 with Abbey - 2004 at 5%

Reading through the threads, I gather I can transfer my ISA with Smile and Kent Reliance to Abbey.

Question:

If I do the transfer for the amounts held with Smile and Kent Reliance this year ie. 2004 to Abbey, will there be some documentation to say that £3000 is for 2002 and £3000 is for 2003?

Basically, I do not want to fall foul with the In land Revenue.

Tia.

steveo86

hi i'm a first year busienss student in brighton and i was wondering... ive just got a stundent account with Natwest allowing me a £1,400 o% overdraft, would i be charged for taking this money and investing it, along with some other savings into a mini isa? would be grateful for some feedback. cheers. any other suggestions?