Alliance Leicester Issue 4 Isa ??

dave555

Hi

I have just been paid my interest on Jan 1 2009, but i have a 1% bonus at may 31st. Is ths credited to the account on or around that date so i can up sticks and move, is it worth waiting for currently its paying 2.55 AER including bonus. About 13.5k in and it paid 560 interest in Jan.

I applied and got a 1 year fixed rate Halifax Isa but have not funded it yet, but the rates dropped to 3.3% so now its not so appealing anymore, will it just lapse or do i have to cancel it or will it affect my current one.

Dave

sheslookinhot

you can only open one Cash ISA per year.

masonic

The interest you have been paid should have included the bonus, so you won't lose out by moving it now for a better rate. You can close the unfunded Halifax ISA. It won't impact anything. Halifax might eventually close it automatically, but it's probably better to contact them.

dave555

Thanks for the reply's
I have found the Fixed rate ISA Halifax letter with new account number etc stating its waiting for funding dated Dec 3 2008.

I ve read the else where on the forum of people getting the rate when they got the account opened letter which was around 4.5 % then, will try and hit them tommorrow with a phone call to see if they will honour it.

will let you know

dave555

Just thought id let you know that Halifax agreed to honour it at the rate at Dec 6th 2008 which was 4% as long as its a transfer of an old ISA and not new business as thats at 3%.
No further funding into that account once opened. They said for Tax year 2009/10 i would be able to take a new ISA out in April, but does that not mean i have two ISA's running Tax free with one running from now till dec 6th and one from april to april 2010 say.

Getting a bit confused can anybody clarify please

Dave

Baldur

dave555 wrote: »

Just thought id let you know that Halifax agreed to honour it at the rate at Dec 6th 2008 which was 4% as long as its a transfer of an old ISA and not new business as thats at 3%.
No further funding into that account once opened. They said for Tax year 2009/10 i would be able to take a new ISA out in April, but does that not mean i have two ISA's running Tax free with one running from now till dec 6th and one from april to april 2010 say.

Getting a bit confused can anybody clarify please

You can have as many Cash ISA accounts as you like as long as you only open AND pay new money into ONE per tax year.

I have opened & subcribed to one each tax year since ISAs began in 1999, as well as having the proceeds of my TESSA account, which is now a Cash ISA.

masonic

Baldur wrote: »

You can have as many Cash ISA accounts as you like as long as you only open AND pay new money into ONE per tax year.

Even that isn't strictly true, as you can transfer a partially subscribed ISA to another account and then top it up.

In each tax year, one ISA manager can be registered to accept new funds from you. To pay new money into a different ISA during the same tax year, you must first transfer your current years subscriptions (and the right to receive new money during that tax year) to the new manager in full. At the start of the following tax year, you are free to open another ISA for new money.

Baldur

masonic wrote: »

Even that isn't strictly true, as you can transfer a partially subscribed ISA to another account and then top it up.

Transfers don't constitute 'opening' a Cash ISA, they merely constitute moving the same ISA from provider A to provider B, hence my wording of 'open AND pay in'

masonic

Baldur wrote: »

Transfers don't constitute 'opening' a Cash ISA, they merely constitute moving the same ISA from provider A to provider B, hence my wording of 'open AND pay in'

If you have a cash ISA at provider A and you want to transfer it to provider B, then you would typically have to open a new ISA with provider B and then transfer the ISA from provider A to provider B. So, in the language used by the banks themselves, ISA transfers involve opening a cash ISA.

Baldur

masonic wrote: »

So, in the language used by the banks themselves, ISA transfers involve opening a cash ISA.

Not in the language used by HMRC, which is what counts.

<Edit> See Chapter 11 - http://www.hmrc.gov.uk/ISA/isa-guidance-notes-2008.pdf

masonic

Baldur wrote: »

Not in the language used by HMRC, which is what counts.

Who are you trying to get your point across to, HMRC or the people reading this forum, many of whom have been indoctrinated with a different set of definitions?

Edit: Don't get me wrong, I'm all for using the correct terminology, but if you use a term that is widely misused in the industry without explaining exactly what it is you mean by it, then people are going to come away with the wrong idea.