Saffron BS - Regular Saver Cash ISA for 2009/2010?

Sebby*

I'm in the process of applying for the above account. Does anyone know what happens about the opening investment? I have already used my 2008/2009 allowance and don't want any issues. Do I send a cheque and backdate it to 6/4/09 or not send anything at all at this stage? It's really not clear. If no one knows, I'll give them a call tomorrow. I did do a search, but can't see that anyone else has asked this. :beer:

kingmonkey

Best to get the info from the horse's mouth, Dr Who.

Be sure to let us know the answer.

Careful_ly

I managed to get through and they ask that a covering note is included with the application to state 09/10. The cheque should be included with the application and she said that should be postdated.

HTH

Sebby*

Thank you.

squidzin

I too am applying for this ISA, does anyone know if I can transfer from my current ISA (full £3600 allowance used) for this year into this isa then make monthly payments into this same ISA from 6 April for next year and maintain the 7% rate?

Careful_ly

No transfers in I'm afraid.

You can only save between £25 and £300 per month into this account as its a regular saver.

cookie1975

I was thinking about applying for this ISA too but got thinking if it would be better to apply for an ISA with a lower rate of interest, where I was able to do a bulk transfer from my current ISA, so I am in effect earning more interest from day 1 due to the higher lump sum in there.

Has anyone got any advice on which is best?

alastair_h

cookie1975 wrote: »

I was thinking about applying for this ISA too but got thinking if it would be better to apply for an ISA with a lower rate of interest, where I was able to do a bulk transfer from my current ISA, so I am in effect earning more interest from day 1 due to the higher lump sum in there.

Has anyone got any advice on which is best?

Answer in this post...
http://forums.moneysavingexpert.com/showthread.html?t=1518953

Milarky

Careful_ly wrote: »

I managed to get through and they ask that a covering note is included with the application to state 09/10. The cheque should be included with the application and she said that should be postdated.

If this type of application can be accepted then there is a small added benefit of the Saffron 7% over the First Direct 7% regular saver anyway - and that this the ability to vary the dates with the former. As you can pay in up to £300 per calendar month then the opening (post dated) cheque could be for a day late in the month of April eg 28th (and cheque 'clears' by 30th) which then becomes the opening date. This allows the second amount to be paid (by variable-dated standing order) almost immediately

Using this example (28th opening date) then the estimated average balance (at 7% tax free) could be approx £2190 - compared to the average balance in the First Direct ISA (with same-day per calendar month restriction) of £1950 - hence 10% plus more interest for those that worry about these things...

BTW: Applications from out of area need to be received before close of business on Monday (2nd March)

DUS

Hi,

Do you *have to* enclose a cheque with the application form if you want to open the ISA for the 2009/10 tax year? Couldn´t I just see if they open the account and set up a standing order once I´ve received written confirmation with the account details?

Yes, I must admit, as a foreigner I am still not used to using cheques at all and even less so sending those by post. I´d be really happy if I could avoid sending the cheque together with my application, but can I really?

Thanks for letting me know!

DUS

oxenryd

Earlier I was thinking, if I send my app with a cheque and I then find a better ISA, then I could cancel the cheque with my bank which means they couldn't pay it in (Well it would be returned) and then open a new ISA. Technically I would have only paid into 1 ISA.

Anyone agree ?