End of 06/07 Financial Year Mini Cash ISA Discussion Area

jay213

jay213 wrote: »

Im new to these ISA/mini ISA.

I have not had any ISAs before.

I bank with halifax. I dont need a current account ar anything with barclays to set up a ISA with them do I ?

If I wanted to open the Barclays one in the next few days and put 3k into it for the 06/07 tax year. Would the account continue to be active into the 07/08 tax year without me having to apply again? if yes, then would I just deposit my next 3k into it and then at the end of 07/08 tax year I would get interest on 6k at 6.5%.

Edit: I just seen the following on there website

"Transfers from an existing ISA, either with us or with another ISA provider, are not allowed." Does that mean I couldnt do what I was hoping to do above? open one for 06/07 now & then continue into 07/08


Also Im just wondering about the following. I have 10k in a savings account. Would it be silly to take this money out now and put it in to an ISA ? e.g I say silly as in, would I lose my interest that I have already built up with it by taking it out before I get the interest?

can anybody answer this. lol Im running out of days if I can put 3k in this tax year & then continue with the barclays 6.5% interest account & then put in another 3k for the 07/08 year. Thanks

david78

jay213 wrote: »

Im new to these ISA/mini ISA.

I have not had any ISAs before.

I bank with halifax. I dont need a current account ar anything with barclays to set up a ISA with them do I ?

No.

jay213 wrote: »

If I wanted to open the Barclays one in the next few days and put 3k into it for the 06/07 tax year. Would the account continue to be active into the 07/08 tax year without me having to apply again? if yes, then would I just deposit my next 3k into it and then at the end of 07/08 tax year I would get interest on 6k at 6.5%.

You won't have to apply again. Just open now and depost £3000 then add £3000 on April 6th or later. You will then get 6.5% on £6000 till April 2008. (This assumes that Barclays don't close or change the rate on 6th April -- they might).

jay213 wrote: »

Edit: I just seen the following on there website

"Transfers from an existing ISA, either with us or with another ISA provider, are not allowed." Does that mean I couldnt do what I was hoping to do above? open one for 06/07 now & then continue into 07/08

You can make two payments as above. This "no transfers" rule is not relevant for what you want to do.

jay213 wrote: »

Also Im just wondering about the following. I have 10k in a savings account. Would it be silly to take this money out now and put it in to an ISA ? e.g I say silly as in, would I lose my interest that I have already built up with it by taking it out before I get the interest?

This depends on the account rules. For instant access accounts you won't lose the interest. You can only put £6000 in cash ISAs in the next few days though, so it would be silly to withdraw more than that.


Hope this helps. Good luck and crack on. Just a few days to go

Shelle

Just a quick query regarding the begining of the new tax year starting on a bank holiday.

Every year I always transfer online the full £3000 to reach my cash isa on the 6th April ie the first available day of the new tax year. Does the fact that easter (Good Friday) falls on that day have any affect on the transfer reaching its destination on the day intended?

masonic

Yes, if your transferring by BACS or direct debit, you'll need to start the transfer a day earlier than normal to account for the bank holiday on Friday and it will get there a day later becuase of the bank holiday on Monday. If you're transferring between accounts with the same bank it might be a different story though.

david78

No, I don't agree. Just time it to get there by the 6th April as before. It will probably hit your ISA acount on the 10th April (the Tuesday).

This "timing a BACS transfer" that people do is a bit dangerous in my opinion. (what happens if its done in less than the normal 3 days?).

If you can pay online by debit card, you may be able to make the payment safely on the 6th April. You will get interest from the 6th, but have the added bonus that it won't leave your bank account until the 10th.

Nick_A_2

Hi, I have an Abbey postal ISA and am thinking about transferring it to barclays TB ISA.

1. Does the high interest apply if you open that ISA 'now' i.e. for the current tax year or can I open the ISA on the start of the next tax year with the same high rate interest?

2. Can I transfer my current ISA content to Barclays in addition to depositing my new allowance?

3. Would you guys recommend that I transfer my existing ISA content to Barclays or even another provider?

Thanks in advance,

Nick.

masonic

Nick_A wrote: »

Hi, I have an Abbey postal ISA and am thinking about transferring it to barclays TB ISA.
<snip>

Let me stop you right there. Barclays don't accept transfers, I'm afraid. You'll need to look elsewhere for a home for your existing funds.

masonic

david78 wrote: »

This "timing a BACS transfer" that people do is a bit dangerous in my opinion. (what happens if its done in less than the normal 3 days?).

Isn't it therefore always a bit dangerous to aim for the money to get there on the 6th April, if there's a chance it could be done in less than 3 days? Or are you saying it is just in this case that there's a chance that Good Friday might count towards those three days?

optimist_2

jem16 wrote: »

The 6.3% applies if you take the monthly interest and don't keep that interest within the ISA. If you keep the interest within the ISA it's 6.5% because of the effect of the compund interest.

So basically it's 6.5%.

Thanks for that jem16. Something I hadn't realised until yesterday; the Barclays rate is variable, it is only the bonus that is fixed at 1%. So if the BOBR goes up, and Barclays pass on at least some of this increase, the Tax Beater must be better than the NS&I product?

I assume both products will track the Base rate down, as well as up, so there is no difference here?

Thanks!

masonic

optimist wrote: »

I assume both products will track the Base rate down, as well as up, so there is no difference here?

Well, there is no rate guarantee with the Barclays account, so they could reduce their underlying rate without a base rate change, whereas NS&I can't, but they do something of a headstart!