Should I move money into an ISA maturity account?

Saver-Rob

Hi all,

I'll try to make this question simple so people understand me...

In November 2008 I put £3600 in to a Bradford and Bingley ISA. In November 2009 this matured and I was left with around £3800 and became an 'ISA Maturity Account'.

I then (stupidly) moved the money OUT of the ISA Maturity Account in to just a normal savings account with Bradford and Bingley as I didnt quite understand the ISA subscription rules etc etc.

So obviously I now regret that but I wonder as I havent actually invested anything into an ISA in the 2009/2010 tax year, should I move £3600 into this ISA Maturity Account quickly just to make the most of my allowance? Will an ISA Maturity Account actually count as an ISA account at all? According tot this link ( http://www.santander-products.co.uk/bbsavings/previous-savings-rates.html ) it seems as though no tax is taken off the minimal interest, so thats a positive sign? I would plan to move the money on and transfer it to a good paying account elsewhere. A transfer does not count as subscription does it?

I plan to subscribe to the full amount for the 2010/2011 year but at a seperate institution.

Any ideas anybody? Thanks for your time.

OneADay

You can stick the money you have now (outside of an ISA account) into any new ISA account.

Personally I would get B&B or Santandar or Amigos (or whateva they are called), to close the empty ISA Matured account. And open a new ISA account after that to stick the money into.

As you intend to go another institution, then just wait about a week to 6th April, you get upto £5100 to invest in a cash isa from then.

Saver-Rob

Thanks for your post. So if I can open a new account in time I could get the £3600 in before the cut off and then put £5100 in to another account after the 1st April?

But if all else fails would my moving £3600 into the Maturity Account count as my allowance for 2009/2010?

Lokolo_2

Saver-Rob wrote: »

Thanks for your post. So if I can open a new account in time I could get the £3600 in before the cut off and then put £5100 in to another account after the 1st April?

Yes you can do this, but I believe the start of the new Tax year is the 6th April due to Bank holidays, after this date you can put the new allowance in. I'm not sure if you'll still be quick enough to get this years allowance in though, you would have to act very fast :j

Saver-Rob

I think I'll just let this one go now and put it down to experience. From next week though I will be looking to use mine and my partners full amount of £10,200 which is a comfortable amount for us to secure for 12 months if possible (and depending on rates).

Thanks all.