Urgent Mini ISA Question - is it worth opening one before 6 April

Gopes

OK, complicated question (for me at least):
I have just been notified of my annual bonus/payrise - wahay will be getting a 4.5k bonus (beers all round).

Question is - I have never bothered with savings before, as I am just finishing paying off my student debts.

However, I intend to save this, and any surplus in future towards a deposit for a mortgage an 6 months-year.

Now, I understand that each tax year, I can put up to £3k into a Mini ISA. Problem is that my bonus won't arrive until my next paycheck towards the end of April. I currently have about a £1k in my current account (up to interest free overdraft limit that is).

I have just opened an A&L Mini ISA, and figured that I might as well transfer the £1k into it before 6 April (otherwise I will lose that concession I believe).

Now question is, it occurred to me that I can do a Super Balance Transfer from my egg card to my current account for say £2k, and top up my allowance for this tax year, on the assumption that after 6 April, I can open a brand new mini ISA and top that up too. Thing is, a Balance Transfer will take up to 7 days to come through (which takes me perilously close to the 6th of April - and costs 2 or 2.5% handling fee). Are transfers into mini-ISA's instantanteneous, or like Balance Transfers, do they take a few days, which would mean that the cash would not arrive in the ISA until next Tax Year.

Is it worth jumping through all the hoops (and paying 50 quid or so in handling fees to Egg)?, Or is the saving so small that it is not worth it, and i should just transfer in whatever cash I have at hand, and leave it at that.

Hope that all made sense.
Cheers
Gopes

grumbler

Gopes wrote:

Are transfers into mini-ISA's instantanteneous, or like Balance Transfers, do they take a few days, which would mean that the cash would not arrive in the ISA until next Tax Year.

Transfers to ISAs are the same as any other BACS transfers. If your ISA has a sort code and and account number you can make SBT directly to ISA as I did with my Halifax ISA.

Is it worth jumping through all the hoops (and paying 50 quid or so in handling fees to Egg)?, Or is the saving so small that it is not worth it, and i should just transfer in whatever cash I have at hand, and leave it at that.

This depends on your long-term plans. If you are going to add another £3K next year and dont tuch this money in the nearest future, I think borroing from Egg card is a good way not to lose this year allowance.

[Deleted User]

Gopes wrote:

Now question is, it occurred to me that I can do a Super Balance Transfer from my egg card to my current account for say £2k, and top up my allowance for this tax year, on the assumption that after 6 April, I can open a brand new mini ISA and top that up too.

I also just opened an A&L mini-cash ISA and I have just been on the phone to them to clarify some points. After 6 April, if you want to invest a further £3K you do not need to open a new ISA (unless you find a provider with a better rate), you just pay it into your existing ISA!

I just asked them this very question and they said it is like a normal saving account but with a tax free £3K limit per financial year.