ISAs: Frequently Asked Questions (FAQs)

Baldur

ljaneyr wrote: »

Thank you! I think I understand now. I'm definitely going to get as much money as possible into this years ISA before 5th April, but I'm torn between opening an A&L ISA with a slightly higher interest rate (3.5% instead of 3%) after 6th Apr or continuing with the original ISA which I would then need to transfer into a new one in Nov. Is either one of these options much better or does it not really matter?

The A&L/Santander ISA would earn £178.50 in interest on a £5,100 balance for a full year, assuming no change in interest rate over the year.

Your current 3% ISA would earn £153.00 in interest on a £5,100 balance for a full year, assuming no change in interest rate over the year.

Whether it's better for you (or not) depends on your circumstances.

Either way, you are likely to be looking at transfers again in the not too distant future, as most easy access ISAs tend to offer a decent rate for a year, after which they slide into obscurity.

rb10

* Bump again *

23rdspiral

thanks for bumping! a very useful thread indeed.

Crabby

I put £7200 in a share ISA in april 2009, can I still put £3000 into a cash ISA before the end of this Tax year? I'm over 50.

RayWolfe

You sure can ... be quick though.

Paul_Herring

Is it just me, or am I seeing an inordinate amount of bumps (from the OP) for a thread that fails to address the full benifits of having a cash ISA over a S&S ISA that also pretends to be a total source of data for those wanting the most out of an ISA?

Yes, I'm sick of seeing this thread pop up, only to see the only new input has been the OP post "*bump*"

Why do you ask?

rb10

Paul_Herring wrote: »

Is it just me, or am I seeing an inordinate amount of bumps (from the OP) for a thread that fails to address the full benifits of having a cash ISA over a S&S ISA

Why should it have to consider S&S ISAs as well? It's clearly stated in the first post that it's only talking about cash ISAs, which is what most people are interested in. It's titled Frequently Asked Questions, and the most frequently asked questions about ISAs are about cash ISAs. Just take a look at the first couple of pages of the ISA board to see that this is the case.

More in-depth discussions about the rules surrounding S&S ISAs, and the benefits of cash over S&S and vice-versa, can take place elsewhere.

Paul_Herring wrote: »

that also pretends to be a total source of data for those wanting the most out of an ISA?

I can't see where it claims this, but do point it out if you can find it and it will be corrected.

All it claims to be is answering the most commonly asked questions. Judging by those that appear on the ISA board every day, it does seem to be doing this.

Paul_Herring wrote: »

Yes, I'm sick of seeing this thread pop up, only to see the only new input has been the OP post "*bump*"

But if it's to be of any use to anyone, it needs to be near the top of the board so that people can see it. I appreciate that it can be a trifle annoying to only see the same thing again and again, but doing this hopefully reduces the amount of repetition in terms of other posters having to ask the same question again and again. So if it's kept near the top, it's really six of one and half a dozen of another.

Paul_Herring wrote: »

Why do you ask?

Erm, no idea what you mean by this. Why does who ask what?

WaxiesDargle

ok I'll bump it ...by asking a daft question...clarification really

my ISA introductory offer from first direct ends in June I think... then the rate plummets.....can I put my new allowance for this year into it...and then in June transfer the lot out to a higher rate ISA...

Ta

rb10

WaxiesDargle wrote: »

ok I'll bump it ...by asking a daft question...clarification really

my ISA introductory offer from first direct ends in June I think... then the rate plummets.....can I put my new allowance for this year into it...and then in June transfer the lot out to a higher rate ISA...

Ta

Not a daft question at all.

For your 2010/11 allowance (£5100), you have these options:

(i) Add it to your First Direct ISA (provided that the T&Cs allow it); or
(ii) Open a new ISA, and put it in there.

Regardless of what you do with your 2010/11 allowance, you can still transfer the First Direct one to any ISA that accepts transfers in in June.

WaxiesDargle

Thanks very much rb10 ...great thread by the way