ISA Confusion / Saving Help

Hashbrown_2

Hi guys, first post but long time reader.

I currently have an Abbey (or Santander) Easy ISA. I signed up to it in 2008 but have only started using it again since November 2009.

I'm allowed contributions of up to £5,100 in it - I thought this figure was different? I thought it was £3,600? Does the allowance go up the longer you hold an account?

Furthermore, what alternative options do I have once my ISA has reached it's full contribution?

I am going to query this with the bank, but thought I would ask here first as getting on the phone to them can prove to be a horrid task.

Thanks guys...

turbobob

If you are talking about the Cash ISA component only then the limit is £5100 from next tax year for everyone, but in this tax year its £3600 unless you are over 50. I think there's been some posts recently about Santander allowing people who aren't eligible for the higher amount to go over their limit in the current tax year..

Hashbrown_2

Thanks Bob.

FWIW, I'm 24 hence the confusion.

As for the new tax year, that's 5th April right?

I can expect any interest payments to be made on this date as well?

10_66

Hashbrown wrote: »

FWIW, I'm 24 hence the confusion.

As for the new tax year, that's 5th April right?

I can expect any interest payments to be made on this date as well?

As you're 24, you can only contribute up to £3,600 in a cash ISA this tax year, which ends on 5 April. On, or after the 6 April, you can contribute up to £5,100.

Interest (unless paid monthly of course) is usually paid on the anniversary of the ISA account opening date (or if in a fixed rate ISA account, on the maturity of the ISA).

Hashbrown_2

Thank you 10_66.

So, what are my options once I put away £5,100?

I'm saving for a house deposit so I'll have to do something with that "spare" cash.

Lokolo

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1210611105334&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateB2

Thats one account.

How much are you planning on saving each month?

Hashbrown_2

Thank you.

I plan to put away approx. £600 per month.

Hashbrown_2

Does anybody know anything about my ISA?

Having looked at there website (grrr, I can't post links) is the interest I can expect to earn 0.10%?

That's very bad isn't it?

I should transfer it right?

Thanks for your help, I'm not very clued up with finances.

Hashbrown_2

I'll post my balance, because I'm anon on here, but this is weird no?

Contributions - £8.29 (don't ask, ha...) - Contributions Remaining £5,091.71

Now, my balance is £2,196.75.

So, effectively, this year I could have as much as £7288.46 in my account.

Is this right?

Mikeyorks

That's right - other than the fact some interest will be added by the end of the year?

But - if the interest rate is 0.1%, get it transferred - otherwise you're simply wasting the tax free allowance. As the 'tax free' bit relates to the interest ........... and you're effectively not getting any!

Hashbrown_2

Thanks Mikey.

Now for the stupidest question, how do I find out how much interest it is earning?

I'll have to call them I guess, because I don't have a clue, right?

I only used Santander because I bank with them.