Didn't know too much about ISA's...

hieveryone

When I opened one last year.

I had £2000 in my ISA, and have just checked my online banking. I was confused as to why my balance had increased without me putting any more money in.

Ah, then I realised the interest had been added. And what interest that was - a whole....

£1.55!

Give me some ideas what I can splash out on....

Jonbvn

hieveryone wrote: »

Give me some ideas what I can splash out on....

You should have transferred to a better paying ISA. With £2k you should get £60+ (3%+) interest per annum.

hieveryone

Jonbvn wrote: »

You should have transferred to a better paying ISA. With £2k you should get £60+ (3%+) interest per annum.

Thanks, as I said I didn't know much about ISA's, in fact, I knew nothing - still don't.

Will need to carry out some research me thinks...

This one is with RBS, what other ones are there?

Thanks

McKneff

literally thousands, google cash ISAs and take your pick.

noh

or take a look at this thread
http://forums.moneysavingexpert.com/showthread.html?t=401374

hieveryone

Thanks for the link.

Very confused - I have an ISA already, but will be withdrawing the money on Tuesday.

Should I close the account when I withdraw the cash so that I can open another ISA with a different provider?

Thanks

KonkyWonky

hieveryone wrote: »

Thanks for the link.

Very confused - I have an ISA already, but will be withdrawing the money on Tuesday.

Should I close the account when I withdraw the cash so that I can open another ISA with a different provider?

Thanks

Why are you withdrawing the money? If it is to fund a new ISA then whatever you do don't "withdraw" the money as you will lose the tax free status of it. If you want to put funds from a previous years ISA into a new ISA then transfer the money over, the new provider will do all this for you on comletion of a form. Your old account will automatically be closed and you can still invest your new tax years allowance in a new ISA (If you have additional funds of course).

McKneff

hieveryone wrote: »

Thanks for the link.

Very confused - I have an ISA already, but will be withdrawing the money on Tuesday.

Should I close the account when I withdraw the cash so that I can open another ISA with a different provider?

Thanks

No, No, No. Never withdraw money from your ISA, you lose your tax free status.

Always go to your new provider and let them Transfer it in. Make sure they allow transfers in before you sign up for a new one.
You will need to complete a form with your new provider and they will deal with it for you.

hieveryone

McKneff wrote: »

No, No, No. Never withdraw money from your ISA, you lose your tax free status.

Always go to your new provider and let them Transfer it in. Make sure they allow transfers in before you sign up for a new one.
You will need to complete a form with your new provider and they will deal with it for you.

OK, now I'm doubly confused! I need the money for my holiday though?
When I was talking to the man in RBS, he advised that I could open the ISA to save for my hol and get some interest at the same time - he didn't quite advise that it would be as little as £1.55 though! :rotfl:

KonkyWonky

hieveryone wrote: »

OK, now I'm doubly confused! I need the money for my holiday though?
When I was talking to the man in RBS, he advised that I could open the ISA to save for my hol and get some interest at the same time - he didn't quite advise that it would be as little as £1.55 though! :rotfl:

I'm more confused than you now. If you need money for a holiday then thats a different story, but if you need that money for a holiday where is the money to fund a new ISA coming from?

Its always better to transfer a previous years ISA to keep its tax free status. Even if you have no new money there is always the off chance that you stumble across some and you keep the option to fund a new ISA open. No point closing the door at the very start of the financial year.

IMO it would be better to fund the holiday with this money you plan to invest in a new ISA.

hieveryone

KonkyWonky wrote: »

I'm more confused than you now. If you need money for a holiday then thats a different story, but if you need that money for a holiday where is the money to fund a new ISA coming from?

Its always better to transfer a previous years ISA to keep its tax free status. Even if you have no new money there is always the off chance that you stumble across some and you keep the option to fund a new ISA open. No point closing the door at the very start of the financial year.

IMO it would be better to fund the holiday with this money you plan to invest in a new ISA.

Sorry, I'm not making much sense!

I have £2000 in the ISA at the moment. I don't really need all that for holiday, maybe only £1500 of it. But when I realised that the interest rate was so low, I thought I'd be better to withdraw it all and put it somewhere else. (I'll still be continuing to save every month).