Just applying for ISA, bit confused about monthly payments.

tomstickland

I've just been onto the Hargreaves Lansdown site to open an investment ISA.
The thing that confuses me is that I have to make a minimum investment of £3K,and since it's a mini ISA then I have a max of £4K.

However, I want to make regular monthly payments into a unit trust fund.

Am I confusing things here? AFAIK you can make monthly payments into an ISA fund?

I have £3K I can invest, so it's not a major problem. I can stick the £3K into two funds and then put the monthly money into normal savins accounts.

I've got one fund in mind,but I want to chose a second one so I can put £1500 into each, so still some resarch to be done.

cheerfulcat

Hi, tomstickland,

HL do offer a regular savings plan
Don't know whether they cover the funds you're looking at, though.

HTH

Cheerfulcat

al_yrpal

If you start now you can only make 2 payments this ISA year. As the limit is 4grand thats two monthly payments each max 2 grand. After April 6th you can start another one. Next year you get £4000 so thats payments of up to 4000/12 per month

carnet

tomstickland wrote:

I've just been onto the Hargreaves Lansdown site to open an investment ISA.
The thing that confuses me is that I have to make a minimum investment of £3K,and since it's a mini ISA then I have a max of £4K.

HL's £3K min. only applies to online investing (I've told them a few times I think its daft and they should amend this )

For smaller amounts you can use either a paper application or by telephone.

Regular Savings require a Direct Debit mandate initially anyway, so can only be opened by post.

Once the ISA is opened you can register to deal online for sales and purchases but, if switching, there is a few days delay between selling and buying so its much quicker dealing over the telephone thereafter as the deals are carried out simultaneously (or as near as possible).

carnet

al_yrpal wrote:

I think the mini ISA equity allownace is £5000

First I've heard.

Thought it was the same next year as this ie £4000 Mini S&S, £7000 maxi.

rangers_fc

I thought the limit for a mini ISA is £3000 per year this year, I dont no if this is just for cash ISAs. I no you can invest £7000 in a Isa per anum , or a combination of ISAs in a year but I think £4000 of this is share based and £3000 cash

dunstonh

£3000 mini cash, £4000 mini equity, £7000 maxi.

tomstickland

OK thanks for the info, I wasn't being as daft as I thought then. Do any of the other online brokers allow smaller starting amounts?

carnet

You can invest a minimum lump sum of £500 per fund online into Cofunds via Bestinvest, either ISA/non ISA ;

http://www.bestinvest.co.uk/transact/fmpro?-db=webprices.fp5&-lay=newiss_info&-format=best-trans.htm&offer_open=y&fund_type=vct&-sortfield=invname&-sortorder=ascending&-max=all&-error=vct.htm&-find

So, with £3k, you could construct a well diversified portfolio of up to 6 funds

IIRC, you can also invest a min of £50/month per fund - but that would require a paper application/DD mandate.

dunstonh

You can invest a minimum of £100 per fund with Selestia (another fund supermarket). It would require IFA to place it but pick the funds yourself and there is no reason why an IFA wouldnt just submit the business with no initial commission.

tomstickland

Thanks for the info. I'll look at Bestinvest. I am considering taking £3K from savings accounts and putting that into funds. I am going to invest in 2 or 3 funds. I've been reading up on the various funds out there.