A few quick n00b questions about ISAs

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
9 replies 883 views
FrukozFrukoz Forumite
23 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi - like many others I've just opened a 3.3% cash ISA with Santander and deposited the full amount.

I have a few quick questions as I'm very new to all of this.

1. Do I need to deposit the funds by 6th April for this to count towards the 2010/11 tax year? Or is this based on when the account was actually opened (i.e. today)?
I'm paying by check from another bank so I guess they will send me details on this by post (no emails yet!) and this could cause delays.

2. On 6th April, can I simple deposit a further £5,340 into the SAME account and get the same 3.3% rate. If there are no better rates available then this might be simplest if it's allowed? Also it makes things easier when transferring out to another ISA in 12 months time.

Many thanks to anyone taking the time to respond!

Replies

  • KTFKTF Forumite
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    1. It counts when the money is in the account not when you opened it.

    2. Yes, you can make an additional transfer in the new tax year. The only thing you cant do is transfer in from another ISA.
  • SanzaiSanzai Forumite
    61 Posts
    KTF wrote: »
    1. It counts when the money is in the account not when you opened it.

    2. Yes, you can make an additional transfer in the new tax year. The only thing you cant do is transfer in from another ISA.
    Though technically what you are talking about doing is adding 'new money' to the account KTF. Best to be careful when mentioning the word 'transfer' in relation to ISAs with people new to it. ;)
  • soulsaversoulsaver Forumite
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    Frukoz wrote: »
    Hi - like many others I've just opened a 3.3% cash ISA with Santander and deposited the full amount.

    I have a few quick questions as I'm very new to all of this.

    1. Do I need to deposit the funds by 6th April for this to count towards the 2010/11 tax year? Or is this based on when the account was actually opened (i.e. today)?
    I'm paying by check from another bank so I guess they will send me details on this by post (no emails yet!) and this could cause delays.
    For the avoidance of doubt, must be by close on 5th so before the 6th. I'm not sure what'll happen if your cheque doesn't clear by 5th c.o.b....
  • FrukozFrukoz Forumite
    23 Posts
    Thanks for the help so far guys!
    soulsaver wrote: »
    For the avoidance of doubt, must be by close on 5th so before the 6th. I'm not sure what'll happen if your cheque doesn't clear by 5th c.o.b....

    Right so this is my main concern. Since this is quite a popular ISA choice, does anyone know if I can do a bank transfer from HSBC, or even walk into a Santander brand and transfer it there and then.

    When I filled out the application the options were simply: transfer from a santander account, pay by cheque, or i'm not saving (which i found confusing).
    Hell, you'd think they would at least send a confirmation email but no.

    So how can I make sure I get my money in before the 5th?
  • SallySunshineSallySunshine Forumite
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    Why don't you give them a ring as the Isa can be opened by phone, on-line or in branch.

    Despite what some say on various threads, I find them very helpful.



    New ISA accounts
    0800 587 2764*
    8am-9pm Mon - Fri, 8am-4pm Sat
    http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210607123629&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA2
  • I'm also an ISA noob, have already opened the Santander ISA a month or so ago.

    If I put a few thousand in it now, will I continue to receive the 10/11 tax free benefit into the next financial year. i.e. can I open another ISA in April and enjoy tax free benefits on both year's allowances?

    Many thanks in advance.
  • If I put a few thousand in it now, will I continue to receive the 10/11 tax free benefit into the next financial year.

    Yes. Once your money is in an ISA wrapper (an while it remains in one) it will retain its tax-free status.
    can I open another ISA in April and enjoy tax free benefits on both year's allowances?

    If you wish to, you can open another ISA, or you can subscribe the 2011/12 allowance to you current ISA (if it allows you to do so - which the Santander one does) come April 6th.
  • Ok so I need to put the full allowance (or as close as I can get) in this years ISA (before April 6th), then I can open another one in April for the next financial year. Both will continue to earn interest tax free?
  • Ok so I need to put the full allowance (or as close as I can get) in this years ISA (before April 6th),

    Yes. What you don't use of the 2010/11 allowance (£5100) is not carried over. It really is a case of 'use it or lose it'.
    then I can open another one in April for the next financial year. Both will continue to earn interest tax free?

    Yes, if you need to open one. The reason I say this is because you can have a different account for each tax year, or you could pool all your subscribed ISA years into a single account (or variations on that combination).

    For example you may find that on the 6th of April, your Santander looks like the best account for your 2011/12 subscription. Therefore, you don't need to open another new account, you can simply subscribe (add) your 2011/12 allowance to your existing account i.e. you have multiple ISA years in a single account.
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