A bit late now but new ISA account?

newuser78

I am a natwest current account customer with an e-savings account (also natwest). I am looking to open an ISA before April 2011.

Am I correct in thinking that if I open a new ISA account today, I can deposit 5,100 into it till April 2011 and then open another one after 6th April 2011 (to run till April 2012)?

Also although I was discharged from bankruptcy 2008, I understand my credit file will take longer to become "perfect" again, can I apply for an ISA without being credit-checked? Searching this forum shows conflicting reports so am confused!:huh:

For something quick and "painless" (and the limited time I have till deadline), would it be better if I apply for an e-ISA or Cash ISA with Natwest now?

Many thanks in advance!

SeriouslySeekingtoSave

You can open your ISA anytime up until the 5th of April for this financial year. Then after the 6th you can start another one.

Regarding your 'credit check' I wouldn't worry about it, from what I've heard it's just for fraud purposes. Just apply and if you encounter problems then deal with it then.

I would also check regarding opening an ISA with Natwest. I was a customer of theirs as well and they usually had some of the worst deals on the market. I shop around for my banking now, I've adopted Martins advice 'Loyalty is for Losers'!

newuser78

Thanks for your prompt response!

I agree with you - from what I can see, Natwest is indeed one of the worst performing players on the market but.... would I get much benefit between a top performer and a poor Natwest e-ISA if the account can only be active for 2 months? Unless I am being stupid? Lol!

Lokolo

Your ISA is a lifetime thing, not just for the tax year, so if you open one now, it isn't going to last just 2 months.

newuser78

Sorry I should have worded my post better. I was thinking in terms of as follows:
Scenario A: Get a rubbish e-ISA now but at least it is easy & quick to apply, "active" till April 2011, after 6th April 2011, get a better ISA (and transfer in)
Scenario B: Time to research for best-rate ISA, apply, wait a while, "active" till April 2011, after 6th April 2011, get an even better ISA (and transfer in)

Is there much difference between the two scenarios based on interest received or any benefits?

SeriouslySeekingtoSave

I am trying to get my Santander ISA sorted for this year. Once I have it I am guaranteed the rate for 12 months, then it drops down so I will shop around and move it to a better performning one. Not all ISA's are the same, they have different rules BUT one thing they all do is that they don't have an 'expiry' other than the rates usually change. An ISA is forever so long as you don't take the money out. If I open my ISA a few days before the end of the cut off period and then open another one a few days later for the new financial year they will both be working for me. Read Martins guide to ISA's, it covers the basic's.

Oh and regarding your question about performance, yes the difference can be huge. I had a wonderful NatWest ISA that was giving me somewhere around 0.5% I think. My Santander will give me 2.85%. That is well worth the time to look around and find something decent. Just check the ISA and Savings section and select what you like the look of, it will only take a few minutes. You may be able to get the same deal by doing a transfer but why bother?

rb10

newuser78 wrote: »

Sorry I should have worded my post better. I was thinking in terms of as follows:
Scenario A: Get a rubbish e-ISA now but at least it is easy & quick to apply, "active" till April 2011, after 6th April 2011, get a better ISA (and transfer in)
Scenario B: Time to research for best-rate ISA, apply, wait a while, "active" till April 2011, after 6th April 2011, get an even better ISA (and transfer in)

Is there much difference between the two scenarios based on interest received or any benefits?

Your ISA now won't just be 'active' until April.

Best way of doing it is:

Open the best ISA that you can now, with up to £5100. There's a list of the best accounts here:
https://forums.moneysavingexpert.com/discussion/401374

Then in April, you have the following options. What you do depends on the interest rates available at the time, and whether the accounts accept transfers in (not all do).
1) Add your 2011/12 allowance to your existing ISA.
2) Open a new ISA for your 2011/12 allowance, and leave the existing one where it is - so you'll have two ISAs.
3) Open a new ISA for your 2011/12 allowance, and transfer the existing one in - so you'll just have the one account.

But you won't know which of these is the best option until you know what accounts will be available then.

Open the best one that you can now, and review again in April. Don't limit your search to Natwest; whilst they occasionally offer decent accounts they are generally poor.

xrjtg

newuser78 wrote: »

Sorry I should have worded my post better. I was thinking in terms of as follows:

I think you're saying that since you intend to transfer away soon anyway, does it matter where you open an account now? You may well be right.

One thing to be aware of is that the bes paying accounts are sometimes for new money only. Since it's possible that there'll be a frenzy near 6 April when providers offer tempting rates to secure this and next year's subscriptions there's some benefit to not subscribing yet and keeping the flexibility to go for these deals if they appear.

Lokolo

newuser78 wrote: »

Sorry I should have worded my post better. I was thinking in terms of as follows:
Scenario A: Get a rubbish e-ISA now but at least it is easy & quick to apply, "active" till April 2011, after 6th April 2011, get a better ISA (and transfer in)
Scenario B: Time to research for best-rate ISA, apply, wait a while, "active" till April 2011, after 6th April 2011, get an even better ISA (and transfer in)

Is there much difference between the two scenarios based on interest received or any benefits?

As rb10 says, it's not just active until the end of the tax year. Its always active.

So if you have money now, put it in an ISA now, you can put upto £5,100 in.

Then on April 6th you get a fresh allowance of £5,340, which you can then top up the existing ISA, or open a new one.

Come April 6th, the old ISA doesn't stop becoming an ISA, it's still an ISA!

You can put ISAs together, which is what I have done, so I currently have £8,990 in the Halifax Reward ISA which is from 2 tax years.

newuser78

Sorry had computer problems!

Many thanks for your helpful responses - it is all a bit clearer for me now! I will hunt around for best ISA I can get now.

Thanks again:T

newuser78

Just to let you know I have applied for Santander's Flexible ISA. My first ISA account too!