Isa newcomer with 2yr plan?

ADMAN_1979

I HAVE £3600 TO PUT INTO AN ISA BEFORE THIS YEARS DEADLINE. I WAS THINKING OF STARTING AN ALDERMORE 2YR FIXED ISA AT 3.6%. THINK I SHOULD GAIN ABOUT£260 OVER THE 2 YEARS? I THEN WANT TO OPEN ANOTHER ISA AFTER THE DEADLINE FOR THE FOLLOWING YEARS ALLOWANCE AND PUT THAT IN ANOTHER 2YR FIXED... CAN I OPEN ANOTHER WITH ALDERMORE? OR IF I OPEN THE 3.5% ONE WITH HALIFAX FIXED FOR 2YRS IS THIS BETTER? FINALLY FOR MY 2ND YEAR I'M GUESSING THAT I CAN OPEN A ONE YR FIXED ISA FOR MY 3RD AND FINAL £3600 (AS MY PLAN SPANS JUST OVER 2YRS I'M GUESSING THAT I CAN DO ALL THESE ISAS AS I'LL HAVE 3 ALLOWANCES IN THAT TIME) AT THE MOMENT THE BEST WOULD BE ABOUT 3% FOR 1YR FIXED (OBVIOUSLY THIS MAY NOT BE AVAILABLE BY THEN). IF ALL OF THIS IS POSSIBLE I USED THE SAVINGS CALCULATOR TO PREDICT THAT MY 3 INSTALLMENTS OF 3600 COULD RAISE ME ABOUT £600. CAN ANYONE SEE ANY FLAWS TO MY PLAN? NEVER LOOKED INTO ISAS BEFORE SO JUST USING MARTINS SITE TO GET AN IDEA. TRYING TO SAVE FOR A HOUSE DEPOSIT! PLEASE LET ME KNOW WHAT YOU THINK. THANKS, ADMAN:money:.

Baldur

Your post is very difficult to read, as it's all in capitals and there are no paragraphs.

Yes £3,600 @ 3.6% would earn just under £264.00 in a two-year fixed rate Cash ISA.

You can open an account for next tax year's allowance with whichever provider you wish, you may find that Aldermore is not offering the best rate on or after 6th April.

Why would you think that Halifax might be better than Aldermore, if they are offering 0.1% less interest for the same two year term?

How much interest you amass from the three ISAs would depend on the rates offered by the 2010/11 and 2011/12 accounts that you choose.

McKneff

Welcome to the MSE boards.

I can see this is your first post = it is very difficult to read, mainly because its in capitals (this normally means you are shouting)
Can you edit it and put in a few line spaces (paragraphs) it will be much easier for people to help you.

C_Mababejive

Have you had a look at NS&I index linked certs?

ADMAN_1979

Thanks for the replies guys. Only mentioned the Halifax one as I wasn't sure if I could open 2 Aldermore accounts at one time? 1 before april and 1 after for another 2years fixed.
Have no idea what NS&I index linked certs are? My knowledge of this subject goes no further than Martins article on chosing ISA's I'm affraid.
I wont have the 1st installment of £3600 until just before the deadline for this year but hope to have the following years £3600 allowance for a week or so later to get the most out of the following years allowance.
I am guessing that two 2year fixed rate ISA's (one just before and one just after the end of the tax year) would be the best I can achieve at this stage and then finally a final 1year fixed term for the 2nd and final year (3rd allowance of £3600). This is all an attempt to make as much of my money during a 2year period... well 2years and a week or so!

Baldur

ADMAN_1979 wrote: »

.....but hope to have the following years £3600 allowance for a week or so later to get the most out of the following years allowance.

The 2010/11 Cash ISA allowance, from 6th April, 2010, will be £5,100 for all age groups (currently only applies to those who are 50 on or before 5th April 2010).

ADMAN_1979

Oh really? That is interesting, though it only adds to my dilema. I will only have a 2nd £3600 by that time.
Do I put the 2nd £3600 into a fixed rate as i'd already planned and then straight away open a non fixed rate ISA that I can pay the remaining £1500 into in installments as and when I have it? Therefore creating 3 ISA's almost straight away. Thanks for replying so soon, I appreciate your knowledge.

Baldur

You can only subscribe to ONE Cash ISA per tax year, so you would be unable to open a FRISA and an easy access ISA in the same tax year.

ADMAN_1979

Ah, I see. So if I can somehow raise the extra cash from the start of the tax year I can take advantage of a fixed rate but otherwise i'm stuck with an easy access rate for the the year. Thanks Baldur. If you do think of anything else I should know your advise is very welcome.

Baldur

You could always subscribe whatever funds you have available on or after 6th April to an easy access Cash ISA, gradually top it up to your maximum allowance and then transfer it to an FRISA (fixed rate ISA).

Some FRISA accounts permit additional deposits, e.g. Lloyds TSB's FRISA offerings for the past couple of years have done so.

C_Mababejive

ISAs are a joke...the rates are rubbish. They will hook you in then drop them....so to speak..(thats isas ,not women)