I've max'd on this years cash ISA . .should I wait till April 6th before I open . . .

The_Salad

I've max'd on this years cash ISA . . do I wait till April 6th before I open next years ISA?

Do I have to wait?
Should I wait? (Can I expect better deals in the new financial year?)

Many thanks.

Jock_Tight

You cant open a 2012-2013 cash ISA till after 6th April, you will have to wait.

Some better deals should come out mid March-April

C_Mababejive

Why would you open an ISA?

le_loup

The_Salad wrote: »

I've max'd on this years cash ISA . .

Doesn't that answer your own question?

The_Salad

le_loup wrote: »

Doesn't that answer your own question?

Errhh . . . I would not have asked if I wasn't sure. I do not know if HMRC are interested in the date you open the ISA or the date(s) you put cash in to them.

C_Mababejive - no clue what you mean in your reply.

C_Mababejive

What i mean is...why would you give your money to an institution where they give you maybe 3%,they then lend it out at a starting rate of over 7% and meanwhile they profit whilst you loose as the buying power of your money is in reverse as true inflation rages at over the official figure?

There will be many tempting offers coming up as they try and milk savers even more in 2012.

Gromitt

HMRC are only interested in how much cash you put in over the tax year. You can open as many ISAs as you want as long as you only subscribe to one per year.

The_Salad

A little disappointed in the replies to my post.

C_Mababejive . . . why use my post to start a discussion on the pros and cons of ISAs? Start your own string.

Gromitt - thank you for YOUR reply. From what you say, . . . even though I have max'd on this years ISA I can open another ISA now so long as I don't pay in my 2012/13 tax free allowance until after April 6th.

pfpf

this ISA issue had me confused for some time and replies to the OP dont help.

i, like the OP assumed you could only open a new ISA once a year, this if course is wrong, as i found on another very helpful thread some time ago.

you can open and transfer to as many new ISA's in a year as you want - taking in to account any T&C's regarding the ISA, and remembering you can only add new money (subscribe?) to one ISA per year.

only Gromitts answer has stated this. i do wish people would stick to facts on such a confusing issue for so many people.

so for example...you could open the Lloyds 3.7% 2 year fixed ISA today and arrange a transfer in, then on the 6th April make your next tax years contribution (£5640.00?).

PLEASE BE AWARE THIS IS MY OWN UNDERSTANDING AND MAY BE WRONG, IF SOMEONE CORRECTS ME I WILL DELETE WHAT I HAVE POSTED.

SnowMan

I think it is technically allowed for an institution to market and allow applications to an ISA now for subscription only after 6th April 2011 (4.6 of the ISA guidance seems to imply this although is about a slightly different issue)

In fact Virgin (Northern Rock) have an 'early bird' account that allows you to suscribe now to a non-ISA and the money converts to an ISA post 6th April. It is an account to be avoided because you are fixed in and miss out on better offers but it does show it is technically possible.

From memory very few institutions allow people to apply for an ISA in the weeks and months before 6th April with the view of only allowing subscriptions for the next tax year, hence you might need to wait. Others may have better memories. That would make it a practical necessity to wait until 6th April to get the best offers. I may be wrong there.

There are some accounts that allow you to contribute this tax year AND next such as some regular saver accounts that crossover the 6th April and a new Lloyds fixed rate account that has just come out. But that is a different scenario.

Lokolo

Yes you can open and leave it empty but many providers will close the accounts soon after because no deposit is made.

So I could open one tomorrow with £0, fine and dandy. Come April 6th, that ISA could have been closed by the provider because I didn't actually use it. I believe most fixed ISAs usually have something along the lines of "A deposit must be made within 30 days of opening"