2009/2010 ISA or save ?

dave555

Hi

Is there any reason why my below plan is flawed :rolleyes:

I have my full allowance 2009/10 ISA money ready for me and the wife, problem is its in a Halifax IASA at 5.65% fixed till Jan 2010.(another forum top tip i followed )

Now does it make sense to leave the ISA money in there and in Jan use our allowances at the best Fixed rate or whatevers available.

Lower rate Tax payer (Just)

Dave

isofa

5.65% after tax is 4.52%, so unless you can find a cash ISA paying this, you might as well hold off.

Remember your ISA allowance for "next tax year" starts 6th April 2009 and ends 5th April 2010, so you can add the money any time up to 5/4/2010 without losing your allowance. So keep it where it's earning most interest at the moment.

Surely if the Halifax account is a fixed rate, you won't have early access anyway? 99% of fixed rates don't allow penalty free instant access... that's the point of having a fixed rate...

BruceyBonus

isofa wrote: »

Surely if the Halifax account is a fixed rate, you won't have early access anyway? 99% of fixed rates don't allow penalty free instant access... that's the point of having a fixed rate...

The Reward versions of the Halifax/BoS IASA accounts allowed a certain number of withdrawals within the fixed rate period.

dave555

Yep, mines a Instant Access Reward 7, i even got a cash card for withdrawals, monthly interest added, no mention of a fixed number of withdrwals or deposits,
was actually Nov 17 2008 when i opened this. So lucking good for this years savings and ISA's :beer:

Cheers Guys

Lokolo

dave555 wrote: »

Yep, mines a Instant Access Reward 7, i even got a cash card for withdrawals, monthly interest added, no mention of a fixed number of withdrwals or deposits,
was actually Nov 17 2009 when i opened this. So lucking good for this years savings and ISA's :beer:

Cheers Guys

You have a time machine?

malik999

dave555 wrote: »

Hi

Is there any reason why my below plan is flawed :rolleyes:

I have my full allowance 2009/10 ISA money ready for me and the wife, problem is its in a Halifax IASA at 5.65% fixed till Jan 2010.(another forum top tip i followed )

Now does it make sense to leave the ISA money in there and in Jan use our allowances at the best Fixed rate or whatevers available.

Lower rate Tax payer (Just)

Dave

I think quite a few people will be holding off opening an ISA in April because they have good interest rates accounts such as the 6.5% from egg etc running. I wont be adding my 09/10 ISA until September 09 unless better ISA interest rates become available.

Reaper

malik999 wrote: »

I think quite a few people will be holding off opening an ISA in April because they have good interest rates accounts such as the 6.5% from egg etc running. I wont be adding my 09/10 ISA until September 09 unless better ISA interest rates become available.

I like to think I'm good with money but it's such a habit adding to my ISA at the start of every year it didn't occur to me that I'm much better off putting it in my Egg 6.5% account until later in the year.

Thanks for pointing that out.

dave555

ammended my time machine mistake

Thanks

apt

The fixed rate at Egg is 6.3% not 6.5%. As my fixed rate expires in June I'm not putting anymore money in. The Halifax GSR at 6% till November is now better for me taking into account the lost days transferring money into and out of Egg. As for ISAs I'll be doing the 7% fixed regular saver at First Direct if it's still available.