ISA advice ... hope you can help !

Bunii_Hugz

Hello everyone [long time lurker here finally decided to join, post and get 'stuck in'] I need a few things 'cleared' up regarding cash ISA accounts ... hope you can help

1] I currently have a cash ISA with RBS which has already paid my interest does this mean that they have 'closed' this years allowance ?

2] Today I applied for a Santander Preferred current account and used their switching service to qualify for the free £100 [I pay in over £1000 and have 3 standing orders] I applied as I noticed Santander customers get 3.5% instead of 3.3% however I am worried they will axe this ... should I just apply for my ISA from them just now ?

Any help will be greatly appreciated

Lokolo

1) Er no..... interest has nothing to do with this years allowance.

2) You can open the ISA with £0 and then deposit money in the new tax year (April 6th) to use your allowance.

Bunii_Hugz

Thank you for your help so far ...

But if I applied for the Santander ISA just now as technically I'm not their customer yet would I be locked into the 3.3% or would I get the 3.5% rate ?

Baldur

Bunii_Hugz wrote: »

Thank you for your help so far ...

But if I applied for the Santander ISA just now as technically I'm not their customer yet would I be locked into the 3.3% or would I get the 3.5% rate ?

The difference between the two rates is £10.68 for a full year, assuming that you paid in the full allowance - hardly a show stopper?

Bunii_Hugz

Is the £10.68 difference if I invested the full amount right away [seeing as the interest is gained for each day the money is in] ?

Baldur

Bunii_Hugz wrote: »

Is the £10.68 difference if I invested the full amount right away [seeing as the interest is gained for each day the money is in] ?

Yes, that's the maximum difference if you paid in the full 2011/12 allowance of £5,340 on opening

£5,340 @ 3.5% for a full year = £186.90 interest

£5,340 @ 3.3% for a full year = £176.22 interest

Bunii_Hugz

Thank you so much you have been extremely helpful