Another ISA question!

Chick

Hello all,

I have a done a quick search regarding this but I'll ask the question anyway...I have reached my investment limit for this tax year according to online banking- my current balance is 2,100 pounds as I had to take money out to pay for a car. so this figure is my "3000 tax free investment" so to speak, which is rather annoying but I had no choice about taking the money out at the time

It's a Halifax Direct saver ISA at 5 percent (for now at least!)- my question is, is it worth putting any more cash into this ISA before 6th April or open a regular saver type account somewhere else and start paying into there?

I think I will stick with Halifax although I will obviously keep my eyes & ears open regarding rates offered at other places.
Any advice? I think I have a bit of a misunderstanding somewhere with these ISAs... Thanks in advance, Chick

jem16

If as you say you have reached your £3000 investment limit, you cannot pay any more into it until after 6th April - it won't let you.

So if you want to save any more cash before then you will have to open an ordinary savings account. As you're already with the Halifax you could open a web saver.

Chick

Thanks for your reply, it's all a bit odd as I paid another 300 pounds into the account a couple of days ago and it now says I have 300 left to invest before the end of the tax year on online banking.

Oh well, will hang on until the new tax year starts in the meantime I've opened a regular savers account with Halifax, also having to open a web saver as well in the process.

Chick

jem16

Chick wrote:

Thanks for your reply, it's all a bit odd as I paid another 300 pounds into the account a couple of days ago and it now says I have 300 left to invest before the end of the tax year on online banking.
Chick

If it says that I would be tempted to pay the other £300 in before the 5th April.

Al_Mac

If you've paid more than £3000 in to an cash only ISA, in one year, you've broken the rules, the provider has broken the rules, they shouldn't have let you. The end of year reporting should spot it. And in theory the provider should correct it.

:beer:

Chick

Well, the amount left to invest has gone back down to zero so will just hang on til 6th April to stick more in! Halifax ISA is currently at 5 percent, hoping this rate will last but I've heard it will be dropping soon...

YorkshireBoy

Chick wrote:

Halifax ISA is currently at 5 percent, hoping this rate will last but I've heard it will be dropping soon...

It falls to 4.75% AER from 6th April - details on their website (and the thread below this one ).

Al_Mac

YorkshireBoy wrote:

It falls to 4.75% AER from 6th April - details on their website (and the thread below this one ).

Thread below is "Can you drive around a racing circuit?" for me anyway:p

I've been doing a bit of a study over the past couple of weeks. Everyone appears to be using intoductory rates to lure us in. Also quoting different types of rates. I've been trying to compare AER on several ISA's and saving accounts, after the introductory rate has finished. Nigh on impossible.

Unless I've missed an important website

Looks as if A&L will be getting my ISA again this year, partly apathy and partly ease, everything is set up:o