M&S Maxi ISA... can I open a Mini Cash ISA with A&L?

rosdif

Hello all,
I've got a Maxi ISA with M&S, only the Stock and Share portion of it, to which I pay £50 a month by direct debit.
Is it be possible to open a mini Cash ISA with A&L, I've read the rules but they say you cannot have a maxi and a mini in the same tax year but in my case, I haven't used the cash part of my Maxi.. would that make a difference?? HELP!!!!

dunstonh

First thing is what are you doing with a MAXI ISA on just £50pm? The person who advised that should be shot. Then again, M&S arent exactly a top provider either.

Anyway, you have to be quick and ask M&S to switch you to MINI for next tax year. Its too late this year and you only have another week to 10 days to get it switched over in time for next year.

rosdif

Thanks dunstonh,
the £50pm on M&S Maxi ISA are for the share portion, that's why I was wondering if I can have the £3k put in another's provider Mini Cash ISA.
The thing really is I'd like to go with A&L mini cash ISA as they have a better rate than M&S (as you said they're not the best provider anyway so I'm not interested in their cash portion of that maxi ISA i've got) but I understand that legally you're not allowed to have both Maxi and Mini ISA in the same time. But does this also apply if you dont use the cash bit in your MAXI?

Thanks again.

dunstonh

Even if you cash it in, its too late. Its based on when you make your contribution.

If you stop the contribution into the MAXI ISA now or ask M&S to switch it to a MINI ISA for next tax year now, then you will be able to pay £3000 into A&L from 5th April.

isasmurf

I take it you have not used your full £7,000 allowance in your Maxi ISA? If you have not, open up a Cash ISA within the Maxi ISA (M&S pay the same interest on the Mini Cash and Maxi Cash currently 4.75%). Make sure the Cash ISA is part of the same Maxi ISA you already hold with M&S. It'll probably be best to speak to them rather then do this over the net.

Come April you can transfer the cash part to A&L. As dunstonh says, make sure that M&S understand that in 2006-07 you want your Investment ISA to be a Mini ISA and that will enable you to have both the M&S and A&L ISAs.

rosdif

You're right isasmurf, I haven't used my 3k allowance included in the Maxi ISA as cash. I will do as you suggest then, put my money in the ISA I already have and in April I will ask them to transfer it.
Thanks again!

regularsaver1

Am I ok in what i'm doing then - I have a mini cash Isa saver direct 5% - and also pay £250 p/m into a Isa investor tracker ?