ISA Confusions

RayWolfe

Well, it doesn't say so in the tables but I just happen to know that they are both variable.
It's always best to go to somewhere like MoneyFacts
http://www.moneyfacts.co.uk/savings/default.aspx
To find out best rates, they are updated hourly and give you access to a lot more information about the accounts.

kincade

thanks ray....so if i've got this right i can put in £3000 on april 5th and get for example 5%p.a which is £3150,then next year i can put in another £3000 leaving me to get the intrest on £6150 ?

jem16

kincade wrote:

thanks ray....so if i've got this right i can put in £3000 on april 5th and get for example 5%p.a which is £3150,then next year i can put in another £3000 leaving me to get the intrest on £6150 ?

You wish!

The interest of 5% is for one full year. To get the full year's interest your money has to be in the account for one full year.

If you put £3,000 in on the 5th April you would get one day's interest which would work out about 41p. So next year add your other £3,000 and you would get interest on £6000.41.

Ian_W

We all wish!!!!!! :rotfl:

Just imagine the queues there'd be outside the banks and bs's on 5 April were it the case - and internet overload - if you could get £150 interest for one day. :j

I'm afraid the p.a. at the end of the 5% is the stumbling block.

homemaker12

Hi guys,
have been looking through this thread as I was also confused about ISA's I think i've learnt alittle from all of you but am still confused about the part that I keep reading (not on this thread) that says 'use it or loose it' what exactly does that mean? Is it the interest you get from the money in an ISA? Do you have to take it out and put it into another account?
hope you can help

kincade

Ian_W wrote:

We all wish!!!!!! :rotfl:

Just imagine the queues there'd be outside the banks and bs's on 5 April were it the case - and internet overload - if you could get £150 interest for one day. :j

I'm afraid the p.a. at the end of the 5% is the stumbling block.

no no,got my dates wrong,thought the new tax year started april 5th,i meant put £3000 in for the duration of the 2007 tax year giving me £3150,then putting in £3000 for the 2008 tax year,would i then get the interest on £6150 ?

steveh2001

homemaker12 wrote:

Hi guys,
have been looking through this thread as I was also confused about ISA's I think i've learnt alittle from all of you but am still confused about the part that I keep reading (not on this thread) that says 'use it or loose it' what exactly does that mean? Is it the interest you get from the money in an ISA? Do you have to take it out and put it into another account?
hope you can help

What that means is that you are only allowed to put £3000 into an ISA account per tax year. So if you dont put any cash in before the 5th of April, you are loosing your allowance for that year. (Correct me if im wrong? Im still a ISA newbie )

jem16

kincade wrote:

no no,got my dates wrong,thought the new tax year started april 5th,i meant put £3000 in for the duration of the 2007 tax year giving me £3150,then putting in £3000 for the 2008 tax year,would i then get the interest on £6150 ?

Yes.

Put £3k in on 6th April 2007 - interest credited on 5th April 2008 of £150. Add another £3k on 6th April 2008 - interest credited on 5th April 2009 of £307.50.

jem16

homemaker12 wrote:

Hi guys,
have been looking through this thread as I was also confused about ISA's I think i've learnt alittle from all of you but am still confused about the part that I keep reading (not on this thread) that says 'use it or loose it' what exactly does that mean? Is it the interest you get from the money in an ISA? Do you have to take it out and put it into another account?
hope you can help

Already answered on your other thread.

http://forums.moneysavingexpert.com/showthread.html?t=372479