Lump ISA vs Split ISA?!

Lokolo

jsl20 wrote: »

so i can't deposit funds up the the £5100 allowance into more than one ISA during the same tax year?

i know i can transfer but i mean "new" money.

Correctamundo.

So if I have £5,100. I cannot put £3,000 into a Halifax ISA and £2,100 into a Santander ISA. I have to put either £5,100 in Halifax ISA OR £5,100 into Santander ISA.

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This is when they are active at the same time. What you can do, is have an ISA with Santander, deposit £3,000, then open up Halifax ISA, do an ISA transfer, and then top up the Halifax ISA with £2,100. But obviously this will only work for ISAs that allow transfers in.

Lokolo_2

jsl20 wrote: »

yeah i'm aware of that; with Halifax i could transfer now, although with Santander i could open it now, but would have to wait until April to deposit money into it. only problem with Halifax however is the lack of interest tracking, which could hurt my interest towards the end of 2011 if they go up to around 1.5% (compared to tracker options)

Even so, the Halifax ISA is Instant Access, so you can transfer it to a better paying ISA if one arises later on, there isn't a benefit of waiting unless you suspect better paying ISA's accepting transfers in to come out shortly, otherwise you are losing potential interest every day with your 2.5% ISA that could be getting more

jsl20

yeah that makes sense. things seem to get a lot more complicated when you need to transfer ISAs, rather than just opening a new one!

Lokolo_2

jsl20 wrote: »

yeah that makes sense. things seem to get a lot more complicated when you need to transfer ISAs, rather than just opening a new one!

Yeah, It's all Lokolo's fault for making the ISA process so complicated :rotfl:

Oasis1

Wait, you can have two ISAs?

Lokolo

Oasis1 wrote: »

Wait, you can have two ISAs?

I have half explained it in your new post

bobthedambuilder

Don't forget to factor in the 2-3 weeks it takes for some of these outfits to transfer between ISA's.

zzzLazyDaisy

jsl20 wrote: »

yeah i'm aware of that; with Halifax i could transfer now, although with Santander i could open it now, but would have to wait until April to deposit money into it. only problem with Halifax however is the lack of interest tracking, which could hurt my interest towards the end of 2011 if they go up to around 1.5% (compared to tracker options)

Re your 2010/11 ISA - If you hold a Halifax ISA and they bring out a new one with a higher interest rate, you just phone up and ask for your ISA to be redesignated to the new one (I have just done this, no problem). Also it is instant access, so if a better one comes along, you can just transfer the money, assuming the new ISA accepts transfers. So as far as your current ISA is concerned, you can't lose buy transferring it now.

You still then have your options open as to what to do with your 2011/12 ISA funds.

jsl20

zzzLazyDaisy wrote: »

Re your 2010/11 ISA - If you hold a Halifax ISA and they bring out a new one with a higher interest rate, you just phone up and ask for your ISA to be redesignated to the new one (I have just done this, no problem). Also it is instant access, so if a better one comes along, you can just transfer the money, assuming the new ISA accepts transfers. So as far as your current ISA is concerned, you can't lose buy transferring it now.

You still then have your options open as to what to do with your 2011/12 ISA funds.

this seems the best option-cheers. looks like i'm off to Halifax this weekend!