Basic questions about ISA's..

kolin_2

I'm looking at sorting out first tax free ISA, now i feel like i can put a little money away every month.

I've been looking at one http://www.leedsbuildingsociety.co.uk/savings/5year_fixed_isa.html and i'm basically trying to decipher it.

1)Do i have to pay in a set amount every month (do i have to pay in anything every month?)

2)Am i free to have another tax-free ISA with another institution as well?

Lokolo

1) You can pay in whenever you want

2) You can only deposit money into ONE cash ISA each tax year. So if you open the Leeds one you can contribute into this until 5th April. Then 6th April, wherever you deposit money from then on, is your ISA for that year.

kolin_2

cheers for that

KingL

Usually with a fixed rate ISA you have to pay all your deposit in in one go and you can't pay any more in after that. Sometimes there is a "limited issue" window (usually of a few weeks or maybe months) and you can pay more funds in during this window, but not afterwards. Extension of this paragraph suggests that this may apply here :

Please note the new ISA investment limits for over 50's from 6 October 2009 which will apply whilst the issue remains open for further investment.

The terms and conditions (para 18) explicitly say you can't pay more money into this ISA next tax year (or in subsequent years). (Of course, you will still be able to pay into other ISAs next year)


Note that you can pay another £3600 (or more, with caveats) into a Stocks and Shares ISA this tax year.

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kolin_2

KingL wrote: »

Usually with a fixed rate ISA you have to pay all your deposit in in one go and you can't pay any more in after that. Sometimes there is a "limited issue" window (usually of a few weeks or maybe months) and you can pay more funds in during this window, but not afterwards. Extension of this paragraph suggests that this may apply here : The terms and conditions (para 18) explicitly say you can't pay more money into this ISA next tax year (or in subsequent years). (Of course, you will still be able to pay into other ISAs next year)


Note that you can pay another £3600 (or more, with caveats) into a Stocks and Shares ISA this tax year.

.

So for this particular account, i could only put in £1000 and thats it until the next financial year?, I couldn't put in £100 / month, every month for 5 years?

I'm only 29, so the over 50-thing is not likely to occur...

Lokolo

kolin wrote: »

So for this particular account, i could only put in £1000 and thats it until the next financial year?, I couldn't put in £100 / month, every month for 5 years?

I'm only 29, so the over 50-thing is not likely to occur...

No you can keep putting money into the account until they close the account for new money. So this could be a month away, could be 12 months away, we just don't know.

Also fixing for 5 years with that rate is a bit pessimistic, plenty of better deals out there.

KingL

You definately can't put in anything more after 6 April 2010 (see TnC para 18 linked above).

They are suspiciously vague about it being a limited issue and what the implications are. I suggest you contact them to ask directly whether you can add further funds after the issue is closed and when they think it will close.

The 'issue' nature of the account is also mentioned in

Further subscriptions in future tax years are not permitted but you may transfer in previous years' subscriptions, whilst the issue remains open for further investments

My personal forecast is that they will close it to new applications and addition of new money in late October 2009. After that you won't be able to add further funds to any cash ISA until you open a new one in April 2010.

I think you need a variable rate cash ISA.

But contact them to find out for sure.