How much can you save?

LucyTheDwarf

eternal_sunshine wrote: »

can you have money in more than one ISA, just just can't put into more than one in the same tax year, is that how it works?

Yes you can have more than one ISA. I've got last years with HSBC, and this year's with Natwest, and I'm thinking about Santander for next year. Think it's definitely about time I got my finger out and transferred the HSBC one elsewhere. It's earning 1.25% if my memory serves me correctly.

If you withdraw cash from a previous year's ISA, and pay it into a new ISA (let's say you withdrew 3600, which had been paid into your old ISA in 2008/09), it would use up your 2009/10 (the current year) allowance. So instead of having 7200 in a tax free account, the maximum you could have is 3200.

If you ask the new ISA provider to transfer funds from your previous ISA, they continue to be funds for a 2008/09 ISA (even though you've moved them since then), and do not count as your ISA funding for the current year. Therefore, you could have up to 7200 in your ISA. I hope this makes sense, it's not an easy subject to explain or to understand. You should be asked to complete a form, to "transfer" an ISA - if you're only making an online / telephone / cheque payment then it's not a transfer.

Not all ISAs accept funds from previous tax years (on the t&cs, look to see if they "Accept transfers in" - this means you can transfer previous year's money). If I were you I would shop around, and find the best rate you can for your new cash (2010/11 funds), because I don't think that Halifax have the best rate (but I haven't looked for a week or so, so I may be wrong). If the account you decide on allows transfers in, great. Tell them when you apply that you want to transfer in previous year's subscriptions. If the account doesn't allow transfers in, look around for the best account that does. Then ask them to transfer from your older ISAs, and do not pay in any funds in this year to that ISA - it's purely for your previous year's subscriptions.

I'm going to start doing some ISA research in the next few days, to find the right ISA fro me for 2010/11. I really ought to sort out my crappy HSBC rate too, so I'll let you know about some that accept transfers in.

Also: http://www.moneysavingexpert.com/savings/best-cash-isa#instant

LucyTheDwarf

Now I'm spamming. This might help you http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

with particular regard to the section about switching providers - but the whole document is a useful read.

eternal_sunshine

thank you so much for that post, you explained that really really well-i'm completely useless with this sort of thing, but you explained it in a way that I could get my head around-i didn't know that about transferring money over, but it being counted as a previous years savings-i'll definitely look into that, thanks for taking the time to explain it (you're the same age as me and know so much! *cringe*)

ljaneyr

Lucythe dwarf thanks for explaining ISAs, I keep researching them, asking questions on here and then finding something else that confuses me! But you solved my latest query - that I can open a new ISA for 2010/11 and then transfer 09/10 balance to a different ISA when the rate drops in November without affecting the new years ISA.

I was doing so well with saving this month and was really looking forward to adding it all to my current ISA before Apr 5th. Now however I'm in the process of switching my current account to A&L (I know I know but I only read the reviews after I opened the flipping thing) and I feel I need to leave the money in my old current account as a buffer in case A&L mess up any of my direct debits. I read so many bad switching experiences on here yesterday that I wish I hadn't bothered. I'm terrified my car finance won't get paid and it'll damage my credit score.

Anyone ever get fed up with thinking about what to do with their money all the time?

tara747

LucyTheDwarf wrote: »

I just had a light bulb moment - but about my health, not money. It's just been discovered that there's a condition running in my family that causes sky high cholesterol, and would increase the chance of having a heart attack by the time I'm 50 to 65%. I'm 23, of 'normal' height and weight, and I eat 'normally'. I don't get much exercise, apart from shopping, but other than that I should be fairly healthy.

I haven't had a blood test yet to see if I've got it, but I've scared myself anyway, so I'm adding a diet to my money saving goals. I need some cheap, healthy packed lunch ideas. I'm aiming to get my BMI down from 24 to 21, which means losing a stone :O I'm aiming to do this by the end of June, and without spending over my food budget. Which means I need to get my parents to buy me lots of stuff for packed lunches, and I need to avoid Wetherspoons.

Good for you! I am trying to lose a stone too, so let's share tips.

ljaneyr wrote: »

Anyone ever get fed up with thinking about what to do with their money all the time?

No, I actually don't mind, anorak that I am! :rotfl:

tinkerbel

so oooone more question about isas please!
I had my 08/09 isa last year with Natwest, opened it about this time last year with £3600. Now I have £3710 (interest rates falling all the time but I dont even know what the rate of this one is!) and I want to put it somewhere better but... If I move it, is the £3600 tax free and the £110 taxable? how does this work for more than one year!!?

ljaneyr

I think you can transfer the whole amount to another ISA that accepts transfers in and it all remains tax free. You can then add your 2010/11 allowance tax-free to that account or open a seperate one (accounts that don't accept transfers have slightly higher rates) to pay this years £5100 allowance into.

I am definitely no expert but I have been trying to get my head around this for a while!:o

Masomnia

ljaneyr wrote: »

I think you can transfer the whole amount to another ISA that accepts transfers in and it all remains tax free. You can then add your 2010/11 allowance tax-free to that account or open a seperate one (accounts that don't accept transfers have slightly higher rates) to pay this years £5100 allowance into.

I am definitely no expert but I have been trying to get my head around this for a while!:o

Sounds about right to me

ljaneyr

tara747 wrote: »

No, I actually don't mind, anorak that I am! :rotfl:

I enjoy it too really, I'm just not loving worrying about switching my account to A&L because I'm scared one of my direct debits won't get paid. Only time will tell unfortunately! I just want to get back to normal saving without juggling my money between current accounts to cover direct debits just in case!

LucyTheDwarf

ljaneyr wrote: »

I enjoy it too really, I'm just not loving worrying about switching my account to A&L because I'm scared one of my direct debits won't get paid. Only time will tell unfortunately! I just want to get back to normal saving without juggling my money between current accounts to cover direct debits just in case!

I've opened the A&L Current account for the interest rate and the Quidco cash back. I wouldn't trust them with my actual banking - sticking with HSBC for my current account.

tara747 wrote:

Good for you! I am trying to lose a stone too, so let's share tips.

Well, I'm a real newbie to dieting, but I found a website that looks pretty good! www.foodfocus.co.uk - it's told me how much I can eat calorie wise, and I've been logging my food, and on Friday I ate a shameful 2800 calories (thanks to a tub of Ben & Jerry's and fish n chips). But since then I've been under 1200, so I am on track - it tells me I can have 1226 calories a day to meet my target.