5 year fixed rate ISA at 5% - Newcastle BS!

RayWolfe

Loco wrote: »

Or am I stuck with making cash isa contributions for the next 5 years? sorry for the newbie question but just want to clear a few things up before I dive into anything.....little confused

No, you have this completely wrong.
The 5 year ISA means that you can, if you chose, keep the money there for 5 years. Next year you have another allowance and you can put this wherever you chose. It is, in fact, unlikely that you will be able to make further contributions to the 5 year jobbie.
Next year you can put your new contribution to a S&S ISA or a cash ISA for a fixed rate, fixed term or instant access or whatever is out there after 6th April 2010.

malc1603

Innys wrote: »

I have applied online for this account and got a reference number. I also got a message saying a welcome pack would follow in 10 days.

Does anyone know if I have to wait for the pack before I send in the transfer form? If not, presumably I record the Newcastle BS reference number on the transfer form?

Thanks in advance

This is what they told me when I asked them about waiting for the pack:

Thank you for your recent e-mail.

No you do not need to await your welcome pack before you send us the transfer form I would advise you to send the transfer form into us as soon as possible.

masonic

Loco wrote: »

What if next April, I am still happy with the 5% cash ISA rate but instead want to invest in a Maxi Isa with another company rather than make a further contribution to this one....is that possible? As long as I dont add to this 5 year ISA..... I presume I can keep this ISA still? or would I have to close/transfer it, if i want to do a Maxi ISA next April?

Or am I stuck with making cash isa contributions for the next 5 years? sorry for the newbie question but just want to clear a few things up before I dive into anything.....little confused

Firstly, maxi ISAs don't exist any more. Next April, you could subscribe to a different cash ISA, a S&S ISA or both. You could also subscribe to a S&S ISA this year if you wanted.

As soon as this 5 year ISA becomes closed issue (which could happen at any time) you won't be able to make any more contributions to it, so it's likely you will have no choice but to open a separate cash ISA next April for any new funds.

amcluesent

With the Nationwide paying 0.35% on their instant access ISA, just opened an account with Newcastle and will xfer over £10K or so.

fatbob10

Im going to go for it and transfer around 10k . ISA rates have been pretty poor for quite some time and this is a good rate. 90 days to get funds back if the interest rates start to get interesting again but cant see that happening for maybe a year or so yet.

dov

What happens if you are over 50 and want to take advantage of the increase in ISA allowance as noted here:

STOP PRESS. ISA allowances to increase.
In the Chancellor's Budget statement on Wed 22 April, he announced that the annual Cash ISA allowance will increase to £5,100. This will happen for this tax year (09/10) for the over 50s, and will come into force on 6 October 2009. For everyone else, the increased allowance will start from the next tax year, 2010/11. Read the news article, ISA Allowance increases

I would like to move from NatWest to Newcastle. But if I do this then I could only add the new £1500 to Newcastle. But since the issue will be closed by then I will be stuck. Is the only solution to just transfer previous years money to Newcastle and then add the 1.5K to NatWest? I'm currently earning 4.05% at NatWest which will run out around November 2009.

masonic

dov wrote: »

What happens if you are over 50 and want to take advantage of the increase in ISA allowance as noted here:

I would like to move from NatWest to Newcastle. But if I do this then I could only add the new £1500 to Newcastle. But since the issue will be closed by then I will be stuck. Is the only solution to just transfer previous years money to Newcastle and then add the 1.5K to NatWest? I'm currently earning 4.05% at NatWest which will run out around November 2009.

You could also transfer the whole lot in and then do a partial transfer of your current years money to another ISA provider to allow you to top up when the time comes.

MarkyMarkD

dov wrote: »

What happens if you are over 50 and want to take advantage of the increase in ISA allowance as noted here:

I would like to move from NatWest to Newcastle. But if I do this then I could only add the new £1500 to Newcastle. But since the issue will be closed by then I will be stuck. Is the only solution to just transfer previous years money to Newcastle and then add the 1.5K to NatWest? I'm currently earning 4.05% at NatWest which will run out around November 2009.

I ddn't know that NatWest would let you top up an existing fixed rate ISA, either?

masonic

MarkyMarkD wrote: »

I ddn't know that NatWest would let you top up an existing fixed rate ISA, either?

I'm assuming it's the same account I have - a variable rate Cash ISA with a time limited 2% bonus for transfers in.

dov

masonic wrote: »

I'm assuming it's the same account I have - a variable rate Cash ISA with a time limited 2% bonus for transfers in.

That's the one.

Have a look at this in the transfer ISA form:

To help you take advantage of your full tax free allowance, the Newcastle Building Society allows you to invest in a number of ISA products with the Society in this tax year. The combined funds held for the current tax year must not exceed your 2009/2010 annual allowance of £3,600. (You must not subscribe to an ISA held with another provider in the current tax year). Newcastle Building Society also allows transfers out of your ISA products invested into the current tax year. The transfer amount must be made up of all balances held by Newcastle Building Society for the current tax year. (Please note: Current year allowances cannot be split between the Society and another provider and some products may have terms that do not allow immediate withdrawal).

So it maybe possible to transfer my entire ISA balance to Newcastle fixed rate now but add the 1.5K to another Newcastle ISA in October.