ISA query - assistance please

kentboy_2

Hi there,

Right, my plan is to have an ISA with the RBS and that will be credited with consecutive amouts (monthly) taken from my current accout.

However, the amount that I will credit to it will be less than the £3,000 allowance per financial year. Brilliant, but what is the maximim threshold for an ISA - i.e. when it is 'full' I would then need to move it to another form of saving.

Thanks,
Alex -:)

ReportInvestor

If your monthly savings do not reach the ISA limit in 2006/7 then you could continue them into your 2007/8 ISA ( which has a further £3K limit starting on 6th April 2007).

You only have to stop when your ISA in any one tax year has had £3K invested into it. At that point you have reached your "full" limit for that tax year only.

kentboy_2

Thanks for that - informative.

gelato_cat

No - whatever money you put into an ISA stays there until you take it out. So if you use the full allowance in a year and leave it there, there it will stay. You can then add another £3k to it in the next tax year and so on. Many people have £24k (plus any interest they earned along the way) in ISAs they first started paying into in the late 1990s.

Suze

kentboy wrote:

Hi there,

Right, my plan is to have an ISA with the RBS and that will be credited with consecutive amouts (monthly) taken from my current accout.

However, the amount that I will credit to it will be less than the £3,000 allowance per financial year. Brilliant, but what is the maximim threshold for an ISA - i.e. when it is 'full' I would then need to move it to another form of saving.

Thanks,
Alex -:)

kentboy_2

Hi there,

Another query - I was looking at opening both an A&L ISA as well as an RBS ISA - is it correct that I cannot open more than one ISA in the 07/08 tax year (or any tax year for that matter), so, I'd have to open one ISA on 03/04/07, and another on 06/04/07?

Alternatively, if I wanted two savings accounts opened within the same tax year, I'd have to open an InstantAccess and and ISA.

Cheers,
Alex -

SeanW

That is correct, you may open and contribute to only one mini cash isa per tax year. You can transfer isas(if feasible) if somebody else provides a better one, and you can continue with this ISA next tax year OR open a new ISA next tax year.

After you have filled one ISA, it would make sense to open another high rate savings account for any more, such as IceSave.

kentboy_2

Thanks.

Cypher

Just a thought that as your not currently able to use up all of your £3000 allocation each year would it not be worth looking at using the higher interest bearing regular savers and then depositing a lump sump into an ISA once they have ended. Starting a new regular saver for the following years ISA.

Phoenix79_2

kentboy wrote:

so, I'd have to open one ISA on 03/04/07, and another on 06/04/07?

Don't leave it as late as 03/04/07 to open this years ISA allowance. A lot of companies won't be accepting applications this late. Try and get it done at least a month before just to be safe

Exceller8

I think Cypher has a valid point, Re:reg saver. After looking at the rate presently offered by RBS ISA £0 - £499 3.80 -£500 - £2,999 4.20 etc....
and think you could get a much better rate with an alternative provider.
see here:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1077487692,12362,

Phoenix79_2

A quick Q please....
I've just opened an ISA at the West Brom - http://www.westbrom.co.uk/westbrom/savings.product?id=2844&FROM_CAMPAIGN=true&CAMPAIGN_SRC=SAVINGS_HOME
How is the interest applied? Is it just against the flat amount of £3k? Or will subsequent months be the interest on the £3k plus the interest already accrued?