Over 50's extra allowance

chrissiewants2save

As of 6 October 2009 the overs 50's can have an extra £1,500 in an ISA. Can anyone tell me if the extra allowance has to go in the existing 09/10 ISA.
Thanks

jem16

Yes it will.

RayWolfe

The existing ISA provider, not necessarily the existing account.

AirlieBird

providing the provider has the ability to hold both accounts within the same ISA wrapper.

EdGasket

I think you can have a cash ISA with one provider and a Stocks and shares ISA with a different provider and pay up to the permitted allowance into each in the same year. So as of 6th October you could put an extra £1500 into say your NatWest Cash ISA and an extra £1500 into your Halifax stocks and shares ISA.
That is a maximum of £5,100 in each from 6th October. But someone correct me if I'm wrong please

Lokolo

EdGasket wrote: »

I think you can have a cash ISA with one provider and a Stocks and shares ISA with a different provider and pay up to the permitted allowance into each in the same year. So as of 6th October you could put an extra £1500 into say your NatWest Cash ISA and an extra £1500 into your Halifax stocks and shares ISA.
That is a maximum of £5,100 in each from 6th October. But someone correct me if I'm wrong please

No you are correct don't worry.

apart from Jems reply below....

jem16

EdGasket wrote: »

That is a maximum of £5,100 in each from 6th October.

Not quite - the maximum for cash will indeed be £5100. However you can use the whole £10,200 for S&S if you wish.

chrissiewants2save

So...let me get this right for my parents..it's only a cash ISA. They have to put the £1,500 into the Halifax because that's who they opened up a cash £3,600 ISA for 09/10.

opinions4u

chrissiewants2save wrote: »

So...let me get this right for my parents..it's only a cash ISA. They have to put the £1,500 into the Halifax because that's who they opened up a cash £3,600 ISA for 09/10.

Spot on. But they could then transfer it to a new provider.

Or transfer to the new provider first. And then top up.

If it's a fixed ISA then they can top up the fix with Halifax, but probably wouldn't want to transfer elsewhere due to the penalty.

rb10

chrissiewants2save wrote: »

So...let me get this right for my parents..it's only a cash ISA. They have to put the £1,500 into the Halifax because that's who they opened up a cash £3,600 ISA for 09/10.

Their options are:

1) Add the £1500 to the existing ISA (they can do this even if the account wouldn't normally allow additional deposits, as there's been an exemption made to the normal rule).

or

2) Transfer their £3600 from this tax year in full to another provider. Note that this will only be permitted if the Halifax ISA allows withdrawals (i.e. is an ISA Saver, ISA Saver Direct or ISA Direct Reward, but not a Fixed Rate ISA Saver), and the new ISA allows transfers in. They can then add the £1500 to the new account, but it'll still be with the other £3600.

Heinz

chrissiewants2save wrote: »

As of 6 October 2009 the overs 50's can have an extra £1,500 in an ISA. Can anyone tell me if the extra allowance has to go in the existing 09/10 ISA.

Possibly not.

http://forums.moneysavingexpert.com/showthread.html?t=1970167